I recommend finding an accountant that specializes in real estate taxation to discuss your options. 

So check on the taxation issue when you transfer from personal to LLC. with new members.

Hi Corazon,Maybe talk to an Real estate Accountant and an LLC Attorney to learn about LLC's, their yearly overhead burden (tax prep, state fees, bookeeping fees, etc...) their taxation, their financing and insurance issues, and etc...Good Luck!

And our double taxation agreement is very clear at this point and says income from real estate may be taxed where the property is situated.

@Brad FletcherYour ideal CPA would be one that understands real estate taxation, Colorado State taxation and Small Business taxation(maybe you want to indicate which industry your small business LLC is in and how many members are in the LLC).

From taxation, you don't get any tax benefit if you do. 

@Jordan McNellyRemember to account for differences in taxation.

The Gurus tell a different story including on taxation of financing inventory;  buy-fix maybe-then immediately sell with financing.   

@Craig Jeppesen that's some aggressive taxation...Do you guys have a decent dispute process...seems like if the transfer price is on record here that is the new value...very difficult to fight the valuation...

Or since this served as my primary residence, do I not have to pay capital gains tax at all?