That was my interpretation based on my research that the LLC protects you regarding liability.

I’ve spent literal hours in city hall working and figuring out the interpretation of the new rules.

Note that CA does not recognize series LLCs, and has a pretty broad interpretation of what constitutes "doing business" in the state. 

The following is my interpretation/understanding as an Appraiser and Broker:In purchase transactions with a lender, the appraisal is specifically for their risk analysis (loan decision), not to specifically protect the buyer from overpaying.

Then the next question i would ask is "how would i avoid it being interpreted as such?"

Most beginners, like the OP, interpret the words "tax breaks" much more narrow: reducing their current tax bill.

It's a matter of interpreting the definition of "real property trade or business": "...any real property development, redevelopment, construction, reconstruction, acquisition, conversion, rental, operation, management, leasing, or brokerage..."

Even if you find high-quality data, interpreting the data is always a challenge.

We too have a clause in our house rules about maintaining a level of cleanliness, but it's interpretation is subjective.

But it is easy to mis-interpret some of these complex issues.expectation of profit is one of the pillars of the project being considered a security.Actually this comes from a key supreme court case on securities issues called the "Howie Case."