However if I use a realtor I feel you are absolutely correct (as others have also stated) to use the VAR and adjust or amend the correct as needed.

Account ClosedThe solution is to amend your prior tax return and remove it as income.

Also, if you decide to setup your Solo 401k plan with your existing LLC but later change business entity to a corporation - plan can be amended to reflect the change of the plan sponsor.

If the person who's staying in the property can afford to pay the rent, you have no problems besides amending the lease where all parties sign and agree to remove the individual who has moved out from the lease and all responsibilities detailed in the lease. 

Estoppel letters are important, but you also want to make it clear that the seller won't amend/change/add any leases.

My realtor was about to send the contract with the amended price that I agreed to which is the seller’s asking counter offer.

I amended what was necessary and then was able to file for this year.

If you'd like to shoot me a message I'm happy to PM you some information on how to correct this issue so you can get your returns amended.

@Victor Nelson I don't believe there is a way for him to deduct the depreciation now without amending those returns. 

Link to form: https://www.boe.ca.gov/proptaxes/pdf/boe100b.pdfIf the LLC did not own any real property, then you can change the ownership by amending your statement of information (form LLC-12) with the Secretary of State.