1031 from LLC to Personal? (Loan Requirements)

[Ian Berg]

Hi BP, 

I'm currently selling a single family home that I hold in a 2 member LLC with my wife. It was originally purchased under my name as an individual. We are purchasing a 4 plex with the 1031 proceeds combined with a conventional loan. The loan needs to be in my name as an individual (loan requirement). The 1031 accommodator says the names need to be the same on both closing statements.

Here is what we are planning: Transfer title of the relinquished property into my wife and my names as individuals, close the sale and purchase loan and then transfer back into the LLC immediately after closing.

Is there a cleaner way to do this without creating a taxable event?