But, a court could rule differently. 

Please be gentle; I'm new at this and it's pretty complex :)Structure / Legal Details- we'd establish market value through a combination of comps from local real estate agent and an appraisal- attorney would establish all required "arms length" aspects including a mortgage at a minimum standard federal rate- LLC would pay us back based on a standard promissory note over 30 yrs Pros of selling to the LLC (I think)- A sale now would be the only time we'd be able to take advantage of the cap gains exclusion on this house bc we won't qualify for the "live there 3 of 5 years" rule due to the timing of our lease and our last time of residence. 

Looking for people's advice on whether or not to pursue small claims court lawsuit for all my costs (rent, advertising, damages, legal minus deposits).

Out of the tens of thousands of people who have claimed REPS and had a full time W2, only like 3 of them have successfully defended their status at the tax court.

I am waiting for a court date.

(Unless specifically specified by statute or legal agreement, both of which are unlikely).The court doesn't always look at the "letter" of the incident, they look at the intent.

Here are a few points to consider:Piercing the Corporate Veil: If you don't maintain clear separations between LLCs, there's a risk of "piercing the corporate veil," where courts may hold the holding company (and potentially you personally) liable for an LLC's debts or legal issues.

Our partner, Jamari Spruell, identified the Bell Court property and presented it to us.

The executor did not properly probate her share in the Union County court.

It's pretty clear, that this issue will need to be resolved in court.....