Question 3- I do plan on reinvesting my gains do I have any other options?

The distinction between active and passive income is so important for investors, and the RE Pro status is a game-changer for offsetting active income.

I’m fairly new to active real estate investing, but I’ve been involved passively for the past few years through syndications.Now I’m making the shift toward more hands-on investing and recently started focusing on the Louisville, KY market. 

If one spouse has passed away, there’s also a potential step-up in basisthat can reduce taxable gain.

Is there a way to reduce that huge capital gain hit?

It might make sense but talk to a good tax professional.If you have lived in the "Family Home" for 2 out of the last 5 years there is a capital gain exclusion $250 or $500k depending on filing status. 

The IRS passive activity rules put those losses “on ice” until you either sell the property or have other passive income to offset.

@Daniel SehyMost syndication sponsors grossly misrepresent the benefits of depreciation to their passive investors.

Suspended passive losses will retain their characteristics of passive losses. 

Quote from @Bob Dole: Non-REPInterests, dividends, capital gains, and rental income (W2 is TBD.