Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. 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, 12/10/2021

User Stats

25
Posts
3
Votes
Ara Abrahamian
3
Votes |
25
Posts

1031 Between Old and New LLCs

Ara Abrahamian
Posted

Hoping you guys can help me understand a nuance regarding LLCs and 1031s.

I currently own an investment property under a single-member LLC that's treated as a disregarded entity for tax purposes (let's call it Main Street LLC). I am selling this property and using the proceeds to buy another investment property. The issue is that I am planning to buy the property under a new single-member LLC that would also be treated as a disregarded entity for tax purposes (let's call the new one Wall Street LLC).

If the ownership of Wall Street LLC and Main Street LLC are exactly the same (both 100% owned by me, the sole member), does the sheer use of two different LLCs risk triggering any tax obligations or breaching the 1031 code? Or is this fairly standard practice?

For those who are curious, my motivation for using a different LLC name is just so the LLC name is unique to the property and somewhat tangentially related to the address of the new property.

Thanks in advance!

Loading replies...