Hi All:

Thanks so much for all your kind responses to this question. Situation was resolved as follows so the 1031 will qualify

SMLLC owner decided not to bring in a new partner. since he had already recorded the new property under his SMLLC along with a Mortgage

It was too much work to undo this and create a new LLC etc.

was if If he had recorded 50% of the new property ,and loan under a new LLC.