Additionally If when you ever transfer that property out of the S corp- even if just to one of you for a refinance or such....It's a taxable distribution at fair market value. 

If you are single, sounds like you will have some gain, if not single, than it may all be non-taxable.

That’s what I did and it created a huge loss on paper to offset my taxable income.

If you take money it is called boot and is normally taxable. 

There can be 100s single member LLC under one taxable entity, and that one taxable entity will file one return with all the lower level rental activities. 

._________________________________________________________________________________________________- 6.5 million tourists spent $4.77 billion in Baldwin County last year, sustaining 51,636 jobs and generating $938 million in taxable retail sales plus $527 million in taxable lodging sales.

This transaction is not taxable.

If you sell the house and it appreciates enough to cause capital gains, that 17% of the gains will also be taxable, not part of your primary home tax free sale. 

Taxable value is something a bit different in that it is generally developed by what is called an AVM, or automated valuation model.

@Sameer KhI won’t keep it..... however unless you can find another property that is worth investing, I would keep some dry powder for 2022 or 2023...If you sell it at $130K, there is no real taxable income.... you won’t be paying much of any tax