Posted by Garrett Sutton on September 12, 2005 at 12:18:01:
You should definitely form a separate entity for each property that you develop. As you are aware, there is risk in development and you wouldn’t want one job to bring down another. Separating assets and activities is a good idea. On the 1031 front, I would call the 1031 Exchange Experts. It is a technical area and these people know all the answers. Their number is 303 549 7156. Good luck, Garrett
1031s and multiple entities - Posted by rackingguy
Posted by rackingguy on September 12, 2005 at 10:20:57:
We have a company that has been building spec SFHs. It now has two builders, and we want to have separate sub organizations for each of the builders. Additionally, we want to have separate corporate entities for each of the properties that we work on for liability protection.
The parent company originally bought and developed the first property. Now that the first property is selling and we’ve put two more properties under contract to develop, we want to do a 1031 exchange, but we don’t want the parent organization owning any of the property, as the companies associated with each builder should own them.
So, I have two questions:
Thanks!