This derives from the rationale of the 15 year exemption.  

I have mowed and taken care of the lot all 8 years we have lived here and it has lived as if we have one acre with our house.Question: if we sell the house to one party and the lot to another do both qualify for the primary residence capital gains exemption?

So does this mean that since we’ve lived in it for more that 2 years and have made $350k, we (my husband and I) can apply for an exemption in this case? 

If you house hack, you also get a homeowner exemption on the property taxes.

(b) Exemptions.(1) [Reserved](2) Business purpose loans.

With capital gains if you file together I thinks it’s $250,000 that’s exempt but speak with an accountant for sure.  

In general, an LLC is a "reporting company" by FinCEN definition, and most real estate centric companies will not meet the "exemption" definition.

In this case you may want to refinance your VA loan on your prior property to restore your original VA entitlement to full prior to your purchase.You can use VA financing for up to 4 units with 100% LTV or 0% down but the subsequent or second use may have up to 1.25-3.30% VA funding fee ( points financed into the new loan) unless if you have a disability rating of 10% of greater on your certificate of eligibility or your COE shows "exempt-eligible veteran."

Hey Gerardell - This strategy is indeed effective and to one of the previous comments, staying there for two years will qualify you for the section 121 primary residence tax exemption at the time of sale. 

SOS will require your business to choose a new nameRetain tax-exempt status.