Disregard, I hadn't seen the one man show posting.

It is not unusual to have a landlord disregard recommendations for paint, carpet, and keeping up with repairs.We fire those.

But, I would generally say that:1) If you own it personally or through a disregarded entity like an LLC, then Yes, I'd think you would still pay taxes.

Steer clear of the one who disregards your idea and tells you what to do.

You are correct that the CA SMLLC (if disregarded for tax purposes) will be treated as the owner on the home for the purpose of the exclusion under IRC Sec 121 (See Reg 1.121-1(c)(3)).

She said "I can't get up with the owners, so disregard.

If you and your wife file a joint return, if the LLC is taxed as a sole proprietor and reports on your personal tax return, and if the trust is a revocable living trust then all of those would be disregarded entities and the tax payer is still you and your return after 5 years - 1031 away.Aside from that there is not statutory holding or seasoning period. 

@Shachar Hess I think disregarding entire states, especially where the majority of the US population resides, is a mistake.

I am disregarding that and doing my own research.

If you have an LLC but run all the finances through your personal bank account, it is easy to have the LLC disregarded in a lawsuit.