The IRS provides for different tax treatment of these entities depending on your election. 

For any variances to use you need to hop the train and go get approvals if engaging a consultant is not on the table now.

Property taxes or IRS taxes?  

I think you are trying to ask if you can deduct real estate losses against ordinary income.Assuming you meet the IRS's activity rules and you are in fact an "active" participant, it really boils down to what your Modified Adjusted Gross Income (MAGI) is.

Consumer debt is around $12,000 credit cards (from moving expenses in 2012), an auto loan of $16,000, a 'bridge' loan that was used to pay closing costs when I sold my property earlier this year of about $7,000, $4,000 to the IRS for personal income taxes for 2013 due to an ignorant mistake on my W4, and about $60,000 in student loans between my wife and i.

You also need to use a qualified QI and do not touch your funds in anyway or later on the IRS can disallow your exchange with an audit.There are certain cost to buy and sell where you can use some of the proceeds for.

Form W-7, Application for IRS Individual Taxpayer Identification Number, must be filed with the Internal Revenue Service to obtain the number.

I am expanding my property investments and need to make sure I have everything kosher with the IRS.  

The IRS considers these to be active businesses, not investing.  

IRS?