sec 1031, fix up expenses and PAL.s

[rohnnk]

On my first exchange, 1 for 1, I had an accountant help me, I had some fix up expenses as most sellers do to get the house ready to sell, I paid for the carpet and paint with a credit card as I do with non exchanges to be paid off at closing. The accountant said I cant do that with an exchange so I was left with credit card payments after the closing. I did put the expenses on the schedule E which caused a passive activity loss problem. How do I avoid remaining credit cards and the PAL’s?

Thanks