Any reduction in debt or cash received may be treated as taxable boot, resulting in potential tax liabilities.

I’ve never run a boarding house, so I’m not super familiar with how state and/or federal laws would treat that.

It looks to be a true 50/50 split based on square footage, so eventually when you go to sell you will be taking 1/2 of the property and applying the federal tax exclusion under Section 121 and the other half will be treated as a capital asset subject to capital gains.

I had an emergency water heater issue, here how they treated  me1) They have few plumbing companies they deal with who have horrible reviews and you have to go with them and wait for atleast a week before they can approve you.2) Once their tech diagnoses it,  Now AHS says installation is not covered and they want to order a water heater themselves which would take many days.

Treat it as a business.Good Investing...

If you want to get deeper into this as Chris said ensure you are calculating your real return here as your gains here are treated as regular income. 

Unless they were going on deployment, I wouldn't treat them any differently than someone who isn't in the military.

I'd specifically ask why it is being treated as a third party sale since the LLCs members are you and your wife.

If you do not live in a community property state then technically you are required to treat a husband/wife LLC as a partnership. 

Also, when owner-occupied, is the rent check sent to the LLC and the owner treated simply as a tenant?