S Corps and Partnerships distribute "distributions" which generally speaking aren't taxable as long as the partner/member/shareholder has tax basis in excess of the distribution.The tax on Box 1 ordinary business income can't be deferred via IRC Sec 1400Z-2.

Any amount you buy less than what you sell or any cash you take out prior to the purchase would be looked at by the IRS as taking profit (boot) and that amount would be taxable.  

The first $40k of your taxable capital gain is in this magical 0% tax bracket.

Interest rates are low and the interest and taxes can be written off on your taxes - reducing your current taxable income.

They could each choose the path best for them - whether to sell and take their portion as cash taxable, do an exchange on their own for that 200K portion, or band together with one or more and do the exchange on that portion.  

Taxable or W-2 income is another big factor in how large of a credit line you may be offered.

(I would count any interest received as normal income)Or is this completely wrong and the IRS considers this an installment sale, regardless if I retain title, and tax me each year and not allow depreciation. 140K - $100K = 40K/12 yrs = $3,333 per yr in taxable income over 12 yrs.I figured that this is something that has been seen before on BP. 

If you want to pull out any of the income yourself, you have to take a taxable distribution from the IRA.

If you planning to use the money to buy real estate in other areas then do 1031 exchange.If you tired dealing with tenants then do seller financing and you will pay gain tax on principal you receive.If you need money for other investments: maybe do refi cash out (loan is not taxable) or 1031 to another property then refi cash out.

-Finally, if I do purchase the home in the name of the LLC and need to take rent payments from the LLC to pay the loan, wouldn't that be taxable income?