It makes no difference how you take it but your paying Uncle Sam.there is a difference with an S Corp (that is more complex) but an LLC does nothing for tax purposes.

Looking into buying this 22 unit apartment complex.

(i.e. are big complexes or small ones driving the data?)

If it is a small complex you could use letters Unit A, Unit B, etc.

This can be quite complex and you are in essence getting taxed on a tax deferred account (defeating the purpose).As Dmitriy pointed out, having your partner use their IRA to fund the deal as a note and deed of trust will avoid this taxation to his/her IRA so all you will need is loan docs drafted and executed.

@Paul LaGrandeur definitely explore all options... investing doesn’t have to be as complex as some like to make it out to be.

The most common exemptions are rental units in these categories: rental units (including condominium or cooperative units) owned by a natural person whoowns no more than four rental units;" - https://dhcd.dc.gov/sites/defa...Thanks for the help in advance! 

Currently our vacancy rates are very low but the builders are starting to address more entry level housing plus apartments are going up like crazy (my husband is currently building a 270 unit complex and that’s only one of several) so vacancy rates can always change in the future.

I personally know people dropping everything from sfh, plexes and up to 250 units in multiple complexes due to the recent law changes.

I have a GC who recently completed 7 units for me in a 19 unit complex in Berwyn.