1031 Exchange via an LLC

[Peter Morgan]

Hello,

I currently own a triplex in my name and thinking about doing a 1031 exchange to reposition myself into a better investment. For my next investment I am planning to start an LLC and purchase through the LLC is 1031 exchange still possible if I am not buying subsequent investment in my name? Appreciate your inputs.

Thanks

[Dave Foster]

@Peter Morgan, Like @Bill B. said you have two options that keep the same taxpayer (which is critical for the 1031)

1. Sell as yourself and buy as a disregarded LLC (an LLC that has only one member and elects to be taxed as a sole proprietor so it doesn't file it's own tax return). You can create a disregarded LLC that will be anonymous by using a registered agent to set it up in their name and then transfer to you immediately. But the LLC will still report on your personal tax return.

2. Sell as yourself. Buy as yourself. And then afterwards contribute the property into a new LLC, This has some advantages but involves multiple deed changes. And there is still a record of you purchasing the new property initially.