Can I 1031 exchange to myself??

[Nicholas Rella]

I currently own two duplexes in addition to my primary residence. Recently, a neighbor at one of my duplexes approached me to see if I was interested in selling. I’ve owned the property for 15+ years and have a good amount of equity. I would rather not pay the taxes on the sale if i can avoid it. 

My question is, can I sell my other property to myself to shelter the proceeds. I believe the second property is in both my wife and my name. I can transfer either property to an LLC if necessary. But I'm just curious if anyone else has done this before.

Thanks in advance!!

[Whitney Nash]

Hello @Nicholas Rella

Unfortunately, no, you can not use 1031 exchange funds on property that you already own/towards debt. The replacement property must be ‘real property' that is ‘new to you'. This includes your LLC since it is tied to you.