Real estate has unique tax benefits, such as depreciation and 1031 exchanges, which can help lower taxable income.

Who knows where these REIT's/Sponsors will be several decades from now, or if they will even keep these specific REIT funds open for that long, forcing us into a taxable event. 

The taxable income from the LLC passes through to your personal tax return via a IRS Schedule K-1 and you include the income / loss on your personal return. 

@Shivam Patel, Contributions into and distributions from an LLC are not normally taxable events. 

So, CPA determines that actual taxable income for the year could be as low as $85,000. 

Then they suddenly told me my taxable brokerage account doesn't count as reserves but they won't let me sell and move assets to a checking account because they won't be seasoned for 60 days.  

It is taxable income

AND, you don’t save a pro-rated portion of the taxes, any amount of your exchange over the ADU value would be 100% taxable. 

In other words, you will pay less in taxes by reducing your taxable income.

The "boot" (cash or non-like-kind property you received, which is $190k in this case) is taxable.