And if I perjure myself against the IRS, they're a government entity, so the crime is on a felony level. 

The IRS allows it. 

Basically the IRS says we gave you that tax break because you were keeping it as an investmentYou sell it and they want it backYou have to recapture the depreciation.

You also don't have to report your own rent factor as income rob the IRS, but if you rented out you're side and cash flowed you would pay income tax, and still have to pay rent somewhere else that isn't tax deductible.

Will this cause me, the buyer to have to pay the IRS more?

They also do not maintain ownership information of LLC's on state public records.The only way I've heard of flow through taxation using a corporation is as a s-corp, but then you'd have to justify active participation in the business to the IRS (which I can't do as my investment activities are passive.

See the following IRS link:https://www.irs.gov/retirement-plans/how-much-salary-can-you-defer-if-you-re-eligible-for-more-than-one-retirement-plan

Just a thought,  but if you pay them a documented salary then it counts as earned income for IRS purposes.  

I have heard that CapEx items are defined as 'depreciatable' by the IRS.  

@Mike Geier:If you have a single-member LLC, you can basically tell the IRS to tax you in one of the following three ways: (1) as a sole proprietorship; (2) as an S-Corporation; and (3) as a C-Corporation.