1031 and renting from own LLC help needed

[Ivan Smith]

I have a question in regards to us getting a property and doing it correctly. We are actually closing on it this week and were under impression that we cud put the house into our llc and rent from the llc. then potentially rent it out or sell it, or sell it to ourselves and turn it into personal home. We are in a time crunch as 1031 property identify period is ending and we are loosing our current lease we live in.

We sold a problem property and would see about 120k profit, so because sales tax would be significant we are doing 1031 exchange and putting the proceeds into this property then adding cash and buying it under LLC.

Idea was to rent it for a year or 2 then do smth else with it. Talked to 2 cpas both say we can't do it and it will probably get audited as it will be in fact our personal residence. If we get audited then we would have to unwind 1031 and pay a bunch of fees and penalties on top of taxes

If someone knows of a legal and correct way of doing this and still be in compliance with tax rules etc please advice asap. Thank you.