Am I saying you should completely disregard any red flags?

Ok BP I need your help.I am selling a condo that has both my wife and I on Title and plan on exchanging into a commercial investment property.The problem I am running into is that in order to finance a commercial property most lenders require a business entity like an LLC in which to lend.So, how do I finance a commercial property in an LLC and keep the Title exactly the same ( remember both wife and I on Title of condo) so that I comply with IRS 1031 rules.I am located in Illinois and plan on purchasing here, but since it is not a community property state, it appears a Single member LLC would not work.Only thing I can think might get me to a disregarded entity status would be for my wife and I to purchase commercial property in a land trust and then assign the beneficial interest to an LLC.

IF you are treating this as a hobby, then disregard this entire post..lolK.I.S.S. coupled with TEAM, Knowledge and Time are the keys to your success!

Keep in mind that a single-member LLC (aside from a corporation) is a disregarded entity in the eyes of the IRS.

Regarding depreciation, you claim it in the USA, when it becomes part of your NZ return it is disregarded or not allowed and effectively becomes taxable profit.  

I wold set up an LLC, as @Ned Carey stated you can elect to be treated as an S-corp for tax purposes or it can be treated as disregarded identity for tax purposes allowing you to report on your individual return.  

I have advised the tenant to email the HOA so as to have some kind of record that shows they're not disregarding their rules.

You might change it later if warranted.Reid - even though yours defaulted to the partnership, you will most likely be filing it as a disregarded entity / sole proprietorship anyway, i.e. no separate tax return.

I have come up with the same information as the OP - that an LLC owned by one person, or a married couple, is considered a disregarded entity by the IRS and there is no separation between the owner and the LLC.

Immediately after the 1031 is complete you can contribute the new property into different entity with out triggering a tax consequence.The exception to this is if your LLC is a disregarded entity meaning it is a single member entity and you have not elected for it to be taxed as a partnership or corporation and it does not file its own tax return.