Hopefully it will help, if not please disregard.  

I've also been encouraged to disregard California entirely due to the cash flow situation.

Patrick, You are correct, there would be no tax consequences by deeding the property into the LLC, as the LLC is considered a "disregarded entity".

Don't disregard the lower rates of the 15s vs 30s @Joseph Fernandez

Once you're outside that 2 out of the last 5 window you no longer qualify for the primary residence exemption but would be qualify for a 1031 exchange of everything including depreciation recapture.A disregarded LLC (an LLC that has only one member and does not file a tax return) should not disrupt your primary residence exemption. 

Technically, which entity (aside from being disregarded if its single member) takes the deduction? 

Sorry duplicate post, disregard!

I hope the OP is smart enough to disregard REALTYMAN's post as a horrible experience.

Disregard their asking price. 

""If the activities of A or B constitute "doing business" in California, X and Y are also "doing business" in California due to their ownership of the disregarded entities.