The property may allow for exemption from licensure if it does not fall under the state definition of 'residential' real property.

I understand that state law requires construction to be done by a licensed contractor and have applied for an owner-builder permit under an exemption from the law.

If the Ownership is in your name, then the gain is exempt.

The only thing related to personal transactions that I remember in our policies was that our first 2 personal transactions for the year were exempt from paying commissions to the office/managing broker(unless you've capped out, of course).

@Rick OrtizIn Pennsylvania, there is a realty transfer tax exemption for certain trusts.

If I sell it to the LLC there would be transfer and title taxes but they will be much less than the taxes on the gains if I rent it out and choose to sell it in 5 years.I will consult with a CPA but the worse case scenario would be I go through all the trouble to sell it to a single member LLC and somehow lose the exemption on the tax free gain.  

Rental income is not UBTI and 401(k)s are, generally, exempt from UDFI on real estate acquisition indebtedness.You must, however, be aware of the prohibited transaction rules that provide for adverse tax consequences for transacting with disqualified persons.

However since it was at one time a church, it is tax exempt and therefore I cannot apply for a tax deed.

The purchase itself is exempt from registration however since it will be a rental that is why registration is required.

When the IRS grants a nonprofit an exempt status.. you can't mingle funds and assets of the nonprofit with a for profit entity.