Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
1031 Exchanges
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated about 3 years ago on . Most recent reply

User Stats

3
Posts
0
Votes
Clay Miller
0
Votes |
3
Posts

1031 Property LLC and additional members

Clay Miller
Posted

Hello,

My question is two fold. From what I have been able to gather from your forum is: If I have a 1031 property in my name and have held the property for 1-2 years that I can transfer it to an LLC and that should not trigger a sale. The second part is what I need help on. So say I transfer that property to an LLC and six months later a couple of individuals want to become members of my LLC. Does that affect the 1031 property in any way? Thanks!

Most Popular Reply

User Stats

1,974
Posts
1,329
Votes
Bill Exeter
#2 1031 Exchanges Contributor
  • 1031 Exchange Qualified Intermediary
  • San Diego, CA
1,329
Votes |
1,974
Posts
Bill Exeter
#2 1031 Exchanges Contributor
  • 1031 Exchange Qualified Intermediary
  • San Diego, CA
Replied

Hi @Clay Miller,

You can transfer the property into an single member and disregarded LLC at anytime. However, if you are going to add members so that it becomes a partnership for tax purposes you should wait long enough to demonstrate that you intended to acquire the property and hold for rental or investment purposes in your name of the single member and disregarded entity. It is all about demonstrating that you sold and intended to reinvest under your individual name/tax return.

  • Bill Exeter
  • Loading replies...