1031 EXCHANGE

Forum|Forum|1 year ago
October 17, 2024
5 replies
19 views

Can the replacement property be owned by a new LLC owned by the original seller (relinquished property)and a new Investor. The new investor ( unrelated) do know about the reduced basis.

Does this invalidate the 1031

Thanks for your kind guidance

M

ProSeries Professional

This topic has been closed for replies.

Just-Lisa-Now-

Intuit Community Champion

You may want to explain what you mean a bit clearer, are you asking if it can be a 1031 exchange from a single person to a different type of entity?

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

qbteachmt

Level 15

Or, if a seller of a wholly owned property is a partner in an LLC that is a buyer, can that purchased property be their 1031 replacement property?

Which ignores that the purchasing LLC is a different entity than the seller. A partnership LLC is not a disregarded entity. Even if the seller had a single-member LLC, it's still not the same owner of the property. Just because it looks like LLC-to-LLC with the same member in each LLC. Is that where you're confused?

Don't yell at us; we're volunteers

T

Terry53029

Intuit Community Champion

From IRS instructions for form 8824.

"Special rules apply to like-kind exchanges made with related parties, either directly or indirectly. A related party includes your spouse, child, grandchild, parent, grandparent, brother, sister, or a related corporation, S corporation, partnership, trust, estate, or tax-exempt organization. See section 1031(f).".

You have a complex question which you need to research your self, and not rely on a blog to give you a simple yes or no

T

Terry53029

Intuit Community Champion

From IRS instructions for form 8824.

"Special rules apply to like-kind exchanges made with related parties, either directly or indirectly. A related party includes your spouse, child, grandchild, parent, grandparent, brother, sister, or a related corporation, S corporation, partnership, trust, estate, or tax-exempt organization. See section 1031(f).".

You have a complex question which you need to research your self, and not rely on a blog to give you a simple yes or no.