Facts: Cary Scweitz owns an apartment complex located in Tulsa, Oklahoma which he manages and operates full-time. It is a large complex, and he acquired it in 1998 for $6,000,000. He added a large section of additional buildings in 2004 at a cost of $2,100,000. He has taken $4,900,000 in MACRS straight-line depreciation in total, which also includes the additional depreciation on the addition. He has located a buyer willing to pay $13,000,000 for the complex, but he will also have to pay a 4% fee to the seller agent that has arranged the deal. He expects to close sometime in early December 2023. He would like to defer the gain on the property but is uninterested in managing another apartment complex. He has considered purchasing an office building, land leased by a large parking garage in a downtown area, or possibly undeveloped investment land, but is doubtful he'll be able to find property in Tulsa for the full proceeds from the apartment complex because of the red-hot real estate market. He also has considered investing all of the proceeds from the apartment complex sale in a Real Estate Investment Trust (REIT), which pays dividends on an annual basis of 8%. A final option he has considered is becoming a non-managing member in an LLC taxed as a partnership that holds real estate, which would pay 8% on his initial capital investment as a guaranteed payment plus a share of the remaining profits from operations. If he pursues the LLC option, he will either contribute the apartment complex directly, or sell it and contribute the after-tax cash proceeds, depending on your analysis of the taxability