1031 Exchange - Individual name to LLC

[Umesh Chokshi]

Hello ,

Good morning. I am listing my residential investment property in a day or two for sale and want to do 1031 Exchange. I have one technical question about this transition.

In relinquished property, my wife and I are on title. So all the sales proceed will got to escrow account of QI with our individual names and SSN. Now when we buy replacement property, we would be buying in the name of LLC with it's own EIN and would be treated as separate entity for taxation purpose. So if we open LLC and get finance in the name of LLC, we would loose benefits of 1031 Exchange and would be responsible for paying taxes. So how to deal with this situation? Can we get financing in our individual names till we convert it later in to LLC?

Need your help as I am confused.

Thanks,

Umesh Chokshi