1031 Exchange Sale - Primary/Rental -> Rental Entity Holding ?
Good evening!
I have a primary residence that is deemed - 80% rental and 20% primary on my taxes. I am renting out majority of the house.
Entity holding question:
When selling and doing a 1031 exchange, I believe you have to sell in one entity pick up with the same entity. So, if I sold from ABC LLC & did a 1031. My new replacement properties would be held in ABC LLC (please correct me if I am wrong).
So, for a 1031 of a primary, I am trying to move my funds away from primary (under my name) to rental (under an LLC). Ideally, I would like to sell from my personal name and do 1031 into an LLC but not sure if that would trigger a taxable event. Any loopholes? Is it best to change my primary property to sit under an LLC before a 1031? My advisor said that for a 1031, he suggested holding for 1 year then 2 years after completion of a 1031 (so under my name) then change the title over to an LLC. I want to be covered and not sure best way to do this.
Thanks for any advice! :)