Hi MelCES1031,Actually, it was going through numerous IRS client audits over many years in the business.

If you are ever audited, you need to have crystal clear documentation that proves every penny that went into the LLC company was used to purchase investments.

Will the underwriters have to audit my business bank accounts the same as personal accounts to verify funds? 

Inappropriate closing costs are one of the first places an audit of a 1031 goes to.  

Properties acquired for personal use such as your primary residence, personal vacation property or personal second home would not qualify for 1031 Exchange treatment.You can acquire replacement property that is held for rental, investment or business use, hold that property for a sufficient period of time in order to demonstrate that you did in fact have the intent to hold for investment purposes, and then later convert the property into your primary residence or second home.The critical component here is that you must be able to demonstrate that you did in fact have the intent to hold for rental, investment or business use should you be audited.

Defending from an IRS audit is different from a civil suit.LLC's are sold as "cheap protection" since the filing fees are negible per state and the attorneys always sell you on how cheap their fees compared to how much you are protecting. 

I have been through 2 years of IRS audits and came through with compliments from them.

IF A LOAN OFFICER TELLS YOU IT'S OK, IT WILL BE TEMPTING TO TAKE THE MONEY, BUT UNDERSTAND THAT LOANS ARE SPOT CHECKED IN AUDITS LONG AFTER THEY ARE MADE BY REGULATORS AND FINDING SUCH LITTLE WHITE OMMISSIONS ARE NOT A PROBLEM.

Who knows what you would be given anyway, unless the borrower is required to have certified audits, for this, I'd skip that.

I do everything from inspections, marketing, tech in the homes, vender communications, revenue audits, owner communication, software integration, and more.