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Will transferring ownership into an LLC cause issues if I try to complete a 1031?
Hi, I have a duplex near Newark NJ that I purchased 4 years ago under my name, and have since turned into a rental a couple years back. I'm thinking about doing (my first) 1031 exchange into a 4-6 unit property. Before I begin the 1031 I'd like to transfer this property into an LLC so that my replacement property will be under an LLC, rather than my name.
Does anyone know if this could cause any issues with 1031 requirements? My worry is that since this is a brand new LLC that will take ownership of the property, it could cause a problem since there's no history with the LLC? Or is this not something I should worry about? Thank you!