The IRS sets the rules, and they are available on their website:https://www.irs.gov/retirement-plans/plan-participant-employ...

Have them agree that they take the house back, your LLC owes nothing and they do NOT report a benefit to the IRS for which you owe taxes. 

The taxable income from the LLC passes through to your personal tax return via a IRS Schedule K-1 and you include the income / loss on your personal return. 

In some conventional tax places, they even charge you per IRS form.

Depreciation also is a huge benefit that you can keep going as long as you are investing in real estate.There's always ways to make your life easier without paying those pesky taxes.hi Dave, yes our accountant has indeed mentioned a possible 1031 into a vacation type property and said we could even use it for up to 2 weeks a year and then write off the travel costs to get there as part of yearly maintenance in IRS code. 

If it’s not their primary, that’s still how I would handle it as they’re going to owe depreciation recapture even if the IRS lets them out of the capital gains.

Maintaining separate personal and corporate funds is critical for avoiding IRS scrutiny.

I am in the Houston area and at times I don't know where and when to hop in.

Jeptha Creed is close to L-ville if you wanted to hop down there for a tour and probably easily found in L-ville as well.

The IRS requires that the entity that completed the 1031 exchange (in this case, the LLC) remains the owner to avoid triggering capital gains taxes.One approach might be to hold the property in the LLC for a period (generally recommended at least a year) to demonstrate intent to hold it as an investment.