1031 exchange after a buyout from a property

[Brandon Giarusso]

Im invested in an industrial building. My LLC owns 33% of the building. We have been offered a proposal to be bought out. Can we take our profit from the buyout and 1031 exchange it into another property? Or is this not possible since the entire entity that bought it isn't selling as a whole? And if not, is there a way to structure the buyout so that is possible?

Thanks!

[Dave Foster]

@Brandon Giarusso, If your LLC owns a tenant in common interest (it's on the deed as an owner) of the property then yes you can 1031 your LLC's interest. It would act just like any other sale of real estate. Only you're selling a fractional interest in a larger piece. You really won't have to anything out of the ordinary.