For what I understand after the property gets sold the not taxable money will have to return to the 401(K) account.

Flipping is a taxable event.

@Caroline Gerardo In regards to the 6% commission eating all the LTCG tax, from my research I was under the impression that only the 6% commission would reduce the amount taxable, i.e. reduce the $113,000 down to $95,230 - decreasing LTCG from $16,950 to $14,285 (15% of $95230)?

You have tax-able income here in the US, so you could claim deductions.

I am interested to know if deeding a property from one land trust (with one LLC as trustee for flipping deals) to another (with a different LLC as trustee for buy and hold) is a taxable event.

But selling an investment property doing a 1031 and buying an investment property and then later changing that investment property into your primary residence is perfectly fine and does not trigger a taxable event.The article you probably read was probably built around a safe harbor  for allowable personal use of an investment property for your intent to hold for investment (Rev Proc 2008-16). 

If you do two things you will not have a taxable event.1.

Both allow for the grossing up of non taxable income to qualify ( like Social Security Income ) VA uses 115% and FHA is some cases will use 125% ( for now )

Is the money you pull out of the property taxable as income?

USA's debt is so high now that the taxable  income does not cover it.