With the 100K in cash, YES, you could use depreciation to have no taxable income on a lot of cases.

@Leland DunnYou would pay the taxes on the entire amount of your taxable gain. 

If your Net Sale Price is about $90,000 and you only reinvest $40,000, you will have traded so far down in value that you will trigger all of your taxable gain.  

In some cases, nothing can be done, and each member will just have to report their taxable gain, but in other cases, it might be possible to make some changes to the LLC in order to structure a 1031 Exchange. 

You can treat the receipt of the earnest money deposit as taxable boot, and defer everything else through the 1031 Exchange, or you can contribute the earnest money deposit back into escrow, then structure the 1031 Exchange transaction with a Qualified Intermediary, so that everything would be tax-deferred.Has the property been held, treated and reported as rental, investment or business use property since you in your sibling inherited the property customer.

The law lets you "exclude" this much otherwise taxable profit from your taxable income.

Last time I checked, the PA Department of Revenue's position is that if you assign an agreement of sale from you personally to an LLC, that is a taxable event.

You may be investing in a 2.25% investment, but that income is then generating taxable income.

To self-certify, a taxpayer merely completes a form (which will be released in the summer of 2018) and attaches that form to the taxpayer’s federal income tax return for the taxable year.

Cash flow is not the same thing as taxable income.