Transferring Rental to LLC; Capital Gains?

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My wife and I are planning to transfer a few personally-owned rental properties to LLCs.  How are capital gains handled during the transfer?  Are there any other issues to consider?  


I don't know much, BUT  I just sold a personally owned vacant lot and bought a vacation rental using a 1031 Exchange to offset any capitol gains.  Dave Foster is the person that handled our exchange and he is WONDERFUL!  He always responded quickly to emails, texts, and phone calls.  I can't recommend him enough.  You can find him on here.  Wish you the best.  


@Jason D. Assuming the LLC is treated as a disregarded entity or a partnership for income tax purposes, then this transfer should be income tax-free under Section 721. However if the LLC is a partnership for income tax purposes, then the LLC will have to track your built-in gain separately and account for this when doing the allocations / preparing the K-1s, which can get very complex. As @Jason DiClemente said, consult with a qualified tax advisor.