In Canada we cannot defer our tax payments like in the USA (which is what a 1041 exchange does).  

I have seen a court case where a taxpayer was denied the deduction because a bookcase filled with pleasure reading books was in the room.Another glitch with rental property is whether it qualifies as a "business" since it is per se passive.

If I transfer the deed from LLC to personal name of a member 1) how do I handle the name change for the title insurance 2) is it a good idea to leave in personal name or transfer back to LLC once refinance is complete (which I'm being told I should do by year's end by my accountant for LLC tax purposes i.e. he said it won't trigger a tax payment either way). 

Now, the reasoning used to justify this (notice I did not use the word logic), is that the municipality runs by taxpayer dollars; so if municipal utilities go unpaid, that would place an extra burden on the taxpayers (i.e. higher taxes).

You will be charged the entire $2k, but the seller reimburses you for his part via a $1k credit at closing.You simply make a record of this $1k credit, and whenever you make the $2k tax payment, you apply the credit, and the remaining $1k is deductible.If, on the other hand, this adjustment was for something else - like a one-time charge for specific improvements to shared property - then it's a different story.

As a cash basis taxpayer, you recognize income when you have constructive receipt.  

NONE of them are proposing doing away with their free meal tickets at taxpayer expense.

@Danny Price, Medicaid and other lienholders have to pay the same redemption charges as the taxpayer.

You're a "cash basis" accounting taxpayer meaning you recognize rent revenue at the time it's received.

If the prospective renter does not have a SSN (Social Security Number), see if they have an ITIN (Individual Taxpayer Identification Number.)