Given that this has been in an aggressive market in a crazy place like CA with their taxation structure it wouldn't take long before it was the recommended scenario to 1031 that - even though they hadn't owned it for very long.

I am a limited partner in a non real estate business. Can I offset my Limited partnership income or a K-1 distribution income with my suspended rental property losses.

-Roth distributions does not impact the CG or taxation of Social Security. 

Question: does this capital gain of $60K pass from the LLC to the 2 owners as individual capital gains and thus tax at the personal capital tax rate schedule (eg 0% for married filers with income of $0 to $78,750, 15% for up to $488,850, etc)? 

Sure, if an owner-employee is adamant about not wanting to draw salary, and is okay with the double taxation and higher effective tax rate, a C Corp is more "flexible" for him and makes more sense. 

@Michael BlackwoodThere is no difference in taxation between an IRA and Solo 401(K) on trade or business income generated from a short term rental. 

(For example, extreme taxation or rules about non-owner occupied properties being eligible for vacation rentals.

So I just didn't know the best way to hold title and reduce the blow of taxation on this kind of project scope.   

Legal liability and taxation. 

Do we avoid taxation?