As for the last post by Jeremy H, disregard that, that is uncalled for, everyone makes bad deals.

It is the change in tax structure from an S-Corporation to a disregarded entity (what an LLC wholly owned by you would be for tax purposes). 

The IRS cross-references your 1098s with claimed deductions, raising concerns if discrepancies arise.Private Lenders and Forms 1098: Private lenders are required to send Forms 1098, but only if they meet specific criteria:The private lender operates as a “trade or business,” distinguishing professional lenders from casual lenders like friends or family members.The loan is issued to an individual or a disregarded single-member LLC.The loan is a mortgage secured by real property.The annual interest paid on the mortgage was $600 or more for the previous year.The conditions leave some room for interpretation, particularly regarding the “trade or business” clause.

If you want to be taxed as a disregarded entity (the default for single-member LLCs), filing this form informs the IRS of the change.

Since the LLC is a disregarded entity, the income/expense flows to the 401k and will be tax deferred.

But, being the crackerjack sales guy you are, you follow gurus on here executing contracts as if you are buying the place with only two thoughts in your mind, how much you might make and how to save you lying azz with a bunch of mickey mouse exit clauses and there is a total disregard for the owner and the position you put them in.So, you contract then you go beat the bushes trying to sell the place, besides your approaches of advertising the property as if you owned it and putting your sign in the yard which is flat out illegal, you just ignore the inconvenient truth and keep marketing the property, bring in your "partners" to approve your scammy little deal.Okay, now, you failed to locate a buyer, your contract time ran out, you bail out and walk away.Where is that homeowner now?

please disregard the above post it was sent before editing.

Or use an LLC that is a disregarded entity (you are the only member and it does not file a tax return).

So it is a disregarded entity where the tax should flow to my 401k.When I try to open a business account with Fidelity, I filled their form to explain that the owner is my 401k and the manager is me.

If you refinance the property into your personal name instead of keeping it in your LLC, it shouldn't trigger a taxable event for the 1031 exchange itself, especially since your LLC is a single-member LLC and is treated as a disregarded entity for tax purposes.