Total value is now $180K and you are responsible for 10/12 of the that as taxable gain, so $150K.

I was hoping to utilize the equity in my primary residence to help with the down payment, but I'm finding that my taxable income is too low/revolving debt too high.  

Although cash out refinance proceeds are not taxable, there are rules limiting the deductibility of interest.

This will be boot/a taxable event, but I am trying to make sure that doesn’t ruin the whole exchange and that she can still proceed with an exchange with the remainder of the proceeds.

For example if I had a STR that nets 40k per year, but after deductions and depreciation I was left with a taxable income of 10k per year.

Additionally, if you are a silent partner on the investment, this is also considered passive.This law was passed to try to hinder wealthy individuals from using depreciation losses to offset taxable income.

AirBnb has all your taxable information for the 1099 already - so that's how they get that to the Muni @Connor Dunham. 

"We were unable to verify this taxable entity with the IRS.

When an entity SELLS to another entity it is not a family transfer deed.LLC was probably like a disregarded entity on your personal returns in the past.A real person can transfer a deed to a family member -called a family transfer, often not taxable -depends on relationship.

Generally, entity changes can get done in such a way that doesn't trigger a taxable event but should be planned carefully with your attorney and accountant.