Posted by William L. Exeter on January 17, 2005 at 14:04:27:
You are most welcome.
llc and a 1031 - Posted by Angela Garland
Posted by Angela Garland on September 27, 2004 at 10:15:02:
if I sell a property owned individually is their any reason I can not do a 1031 and buy a property owned by an LLC which I have an interest in?
Re: llc and a 1031 - Posted by William L. Exeter
Posted by William L. Exeter on September 27, 2004 at 19:03:43:
Yes, it depends on the ownership structure. A single member LLC is considered to be a disregarded entity, which means it is ignored for income tax issues and the acquisition would be treated as if you had purchased the property as an individual. However, if there are multiple member, then the LLC is no longer a disregarded entity and it is treated as a completely separate tax paying entity and would not qualify as like kind property for your 1031 exchange transaction (it would be treated as if you purchased an interest in the LLC and not an interest in real estate). If I am interpreting your post correctly, you would have an interest in the LLC (not 100%) and there would therefore be multiple investors so it would not qualify.
Bill Exeter
Re: llc and a 1031 - Posted by Steve
Posted by Steve on January 14, 2005 at 19:55:51:
How about a couple that own a property together and transfer to a LLC that only includes the two of them?
Re: llc and a 1031 - Posted by William L. Exeter
Posted by William L. Exeter on January 14, 2005 at 23:56:13:
If the husband and wife are the sole members of the limited liability company, are married, live in a community property state, and file a joint income tax return the limited liability company would be considered to be a disregarded entity and the acquisition of real property would be considered to be like kind property for 1031 exchange purposes.
Re: llc and a 1031 - Posted by Steve
Posted by Steve on January 15, 2005 at 16:37:21:
Thank you, I really appreciate this forum.