Here is how I interpret the tiered structure:  If you're in the 10% or 15% tax bracket for ordinary income, then the amount of long-term capital gains that keeps your total taxable income at or below the 15% bracket is taxed at 0%.If you're in the 25%, 28%, 33%, or 35% tax bracket, then the amount of capital gains that keeps your total taxable income at or below the 35% bracket is taxed at 15%.If you're in the 39.6% tax bracket, then your long-term capital gains rate is 20%.At some point, if the capital gains is large enough, AMT rules come into play.The problem with your scenario is how the IRS will perceive your intent.  

(Some may interpret corporation law to mean that you as an individual could not perform the search for and marketing of real estate for this Investor entity unless you are a licensed agent or a W2 employee. 

some are more conservative, others are more liberal in their interpretation of what is a cloud.

I interpret it as something the town is using as a legal tool to hold owners accountable, if something does go wrong.

Ask strangers on the internet to interpret every paragraph of a legal contract for you then rely on their answers to determine whether or not to execute?

Is there any legal/accounting interpretation/loophole which would allow for that sale to be considered a "capital gain" so that I can utilize my stock losses as an offset?

Many months ago I sent questions to my state's AG office and I am happy with the state (NC that is) Commissioner of Banks providing the interpretation.

I was aware of what you outlined and that there was guidance after it that clarified the interpretation, but I wanted to be sure nothing changed after 2019.https://www.biggerpockets.com/... 

I'm looking at other readers here who could interpret it in such a way, though.

Assuming the source website is legit, the tax law can be interpreted that if you only own a few properties and it's in your name (or an LLC and you and/or your spouse are the sole member) then you do not operate a trade or business and are not required to issue a 1099 regardless of >< $600.http://landlordsolutionsinc.com/2013/12/does-your-handyman-need-to-fill-out-a-1099/However, I did read on this BiggerPockets post: http://www.biggerpockets.com/forums/51/topics/87325-issue-w9-for-work--600... that it's generally a good idea, good practice.