Newsflash: Renting from an LLC I am a minority member of? (TX)

Hi there, /r/RealEstate! I’m hoping you can give me thoughts on this situation my family is looking at.My parents own a farm in the panhandle of Texas, in an LLC. They are planning to sell soon and to avoid capital gains, my father is looking at doing a 1031 exchange. What he would like to do is add my brother and me as members of the LLC (at 12.5% or perhaps 24.5%) and then buy us houses in cash, and have us pay rent to the LLC.Is this possible? Or would this only be possible/tax-advantageous if we were not listed on the LLC? Also, I am married. So theoretically could I be listed on the LLC and my husband be listed on the lease agreement?If there is a better option than an LLC I would definitely be open to hearing about it. My parents are definitely going to consult with their CPA and lawyer, but my father is out of the country right now so I am doing some preliminary research. I have found a lot of discussion about renting from an LLC you own directly, but nothing about the exact situation we are planning on. Thank you!

Read more at https://www.reddit.com/r/RealEstate/comments/6phaxc/renting_from_an_llc_i_am_a_minority_member_of_tx/?utm_source=ifttt

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