Two different business purposes, and you'd hate for the IRS to classify your holds as taxable inventory and ineligible for depreciation allowance.

One thing to keep in mind from a tax standpoint is that as passive income, you will be taxed on the income all at once, so if you've been looking to write off passive losses against other income, you may have taxable income in the year you accept the money and then a much larger loss than usual in the next year, assuming your rental period straddles tax years. 

@Max James,The answer depends on the amount of taxable income received from the rental.  

What you do not use in the 1031 will be boot and taxable.

Your gain would be taxable in 2022 under Section 453 (installment sale code) or you would elect to take the tax hit in 2021.

Sale of the property would / should count as a taxable event for the LLC. 

@Michael Plakshi Michael, another bonus depreciation/ amended tax return/ related question for you:- Tax year 2022, 2 STRs go into service, and total bonus depreciation is calculated to be $150,000- After the bonus depreciation is applied, my taxable income is offset completely, and I essentially have about $70,000 remaining as a carryover to apply to tax year 2023.Is it best to take all of the bonus depreciation deduction when I initially file for tax year 2022, or should I just take bonus depreciation for one property in 2022 since I will have extra?

Cash return is different from taxable income.

Gross income is taxable, but then there are deductions against the income, and in the event of a loss the tax would be non-existent. 

Most likely you would be able to do that and not have much taxable income from the rents do to the operating expenses.