Posted by Dave T on December 22, 2004 at 09:53:00:
Be careful here. As I understand the 1031 rules, the replacement property must be titled in the same way as the relinquished property.
Get advice from a professional 1031 facilitator before you proceed further.
1031 LLC - Posted by Juan P. Lopez
Posted by Juan P. Lopez on December 17, 2004 at 19:17:42:
I’m doing a 1031 exchange with the reliquinshed property being titled as an individual. New properties will be structured under new single member LLC. My question is once I’ve completed the exchange, in the future would I be able to gift shares to my kids annually to reduce my estate?
Re: 1031 LLC - Posted by William L Exeter
Posted by William L Exeter on January 09, 2005 at 19:41:14:
I had two comments.
First, a single member limited liability company is considered to be a disregarded entity, and as such would be considered to be the same as the underlying individual owner.
Second, you can always gift an interest in the property or the LLC to your kids, but you do not want to do this right after the 1031 Exchange has been completed. You need to demonstrate your intent to hold the property as rental or investment property. I would wait 12 months to be safe and then begin gifting interests in the property.
Bill Exeter
Re: 1031 LLC - Posted by chet
Posted by chet on December 22, 2004 at 09:56:03:
also look at if the property can be quit claimed to the LLC w/o tax liability. In CA if you own it 100% individually, and the LLC is 100% you as well, it’s tax free.
Also, I don’t know that an LLC can give gifts.