Sorry, and please disregard

If the property was used other than as a residence, aka a rental, you don't get the full exclusion and must prorate it.Finally, there is an exception: if you moved out and never moved back in, then Step 2 is disregarded.

Some people think that if they have a single member LLC that the LLC and themself are one and the same because the IRS says its a disregarded entity. 

There comes a time if you own many houses, that owning them through a LLC might help mitigate legal risk.LLC can either be disregarded for tax purpose, which means that in general you will elect to file for tax and get taxed on net income as US persons are (with minor differences on exemptions/deductions).

@Jeffrey McKee,Reading your post, reminds me of a tenant we just got rid of-- I call them "Laura Lawyers" because they think they are much smarter, and will read the fine print to their advantage and disregard all the good things you did-- ie: not charging to break a lease.         

Hi @Alex Castillo, This means that the LLC is not a single member LLC or disregarded entity for tax purposes. 

what will it actually do to help me in the case that they completely disregard a purchase agreement they already signed with me?

Hi @Julie Sisnroy, Yes, as long as the new LLC is a single member LLC and disregarded entity and you are the sole member of the SMLLC it will qualify as the same taxpayer for 1031 Exchange purposes. 

I assume your LLC's are disregarded entities?

- They ask you to send, wire or transfer money-will say things like “Disregard the Real Estate company information, we fired them and are leasing it ourselves”.