+Owner is self employed, 40 yrs general contractor (sole proprietor), has 2 yr tax return1) Prime rate + (?)

So you can still take the home office deduction as a sole proprietor. 

I know as a sole proprietor, I will file my LLC's income along with my own personally.

And then contribute it into a new LLC after the 1031 is complete.But that being said, if the LLC you have set up is a disregarded entity (meaning it only has one member and chooses to be taxed as a sole proprietor so it doesn't file it's own tax return) then the activity of the property will still be reported on your personal return even if deeded to the LLC. 

You are a different legal entity, no matter whether you are operating as a sole proprietor, partner, S-Corp, C-Corp or LLC.I recently sold an airport operator (FBO). 

Even as a sole proprietor you will be able to expense costs of goods sold and mileage. 

These ICs are either sole proprietors or work in their sole member LLC. 

If your state allows sole proprietors to opt out of Workers Comp. still insist that they have a policy for the business. 

Look up "sole proprietor." 

As a solo proprietor, we've always had one for personal use and one for business use.