Taking title as individual instead of Single-Member LLC in 1031 exchange

[Alex P.]

Does anyone have advice regarding doing a 1031 exchange, where the goal is to take title back as an individual and dissolve the LLC that the relinquished property was held in (without triggering a taxable event)?

I have sold a property owned by a Single-Member LLC (formed in California) and will be replacing with a portfolio of DSTs. The SMLLC was treated as a disregarded entity for tax purposes (married filing jointly). I would like to take title on the DSTs as an individual and dissolve the LLC for simplification purposes.

Options seem to be:

1) Take title as individual on replacement property

2) Take title as LLC on replacement property, then transfer to individual later

3) Take title as LLC on replacement property, maintain LLC indefinitely

Appreciate advice from anyone experienced in this matter. 

[Joe Vesey]

Quote from @Alex P.:

Thanks for the feedback Greg Scott and Natalie Bender. Sorry for not clarifying in the original post. The proceeds are currently with the QI. 

I'm referencing what is referred to as the "disregarded entity exception" or "Same Taxpayer" rule.

https://www.1031.us/using-disregarded-entities-like-kind-exc...

https://www.firstexchange.com/vesting-title-1031-exchange

It would appear there's precedence for treating a single member LLC that's a disregarded entity for tax purposes the same as the individual in taking title to replacement property in a 1031 exchange. Does anyone have any experience doing this in a 1031 exchange?

Yes, as long as the LLC is a single member LLC that is disregarded (does not file it's own tax return) then the taxpayer is the individual and the taxes are filed using their SS#. This is done all the time in 1031 exchanges.