1031 Exchange

[Jeff Adema]

I'll be honest, I'm somewhat of a beginner / novice with real estate investing. My wife and I own 3 rental properties that we purchased between 2010 and 2014 and we'd like to make a move towards releasing some of the equity from one of the properties and utilizing the proceeds to purchase a multi-family dwelling to increase cash flow. My thought is to accomplish this via a 1031 exchange. The purchase of the replacement property however would be done with a partner and in the construct of a business entity. I'd appreciate your feedback on whether or not the replacement property being purchased by LLC XYZ with a different tax ID than the selling property (my SSN) would make the capital gain taxable. Thank you in advance and I appreciate you taking the time to read.