Transfer to LLC before exchange?

[Cassandra Brown]

I'm new to this and thinking of exchanging a fourplex near San Diego for some properties nearer to my residence, in Wisconsin. I received the property from my mother as gift (not inheritance) so there is quite a bit of tax liability if I just sell it. I'm thinking I need to have an LLC for any rental property that I have, and so I have been trying to understand what I need to do to transfer this California property into a Wisconsin LLC; and if I need to do that before the exchange. If not, then is there any problem with purchasing the replacement property as an LLC?

[Dave Foster]

@Cassandra Brown, If you're thinking to do this shortly you may want to wait and do it after the 1031. A change of taxpayer (if you're not using a disregarded LLC) would need to season a bit. And A WI LLC Has to be registered in CA so there's an added level of cost that you don't have to incur. And lastly, if you sell in your name and buy in your name before contributing to an LLC you can probably access more advantageous financing.