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Updated over 1 year ago on . Most recent reply

User Stats

60
Posts
49
Votes
Emily Beatty
  • Real Estate Agent
  • Atlanta, GA
49
Votes |
60
Posts

1031 Exchange - Partnership into Personal Name

Emily Beatty
  • Real Estate Agent
  • Atlanta, GA
Posted

I am considering a 1031 exchange of two duplexes - owned in a partnership LLC by my husband and myself (in Kentucky) - into a single small multi-family investment property in Georgia. The Partnership files its own taxes with an EIN and does not pass through to our personal taxes. Is it possible to deed, or transfer, the properties held by the partnership LLC into our personal names and subsequently 1031 exchange into a property in our personal names in Georgia after the deed transfer? Is there a seasoning period in which the property must be held in the personal names before a 1031 exchange can occur (assuming this is possible)? Is there another way to do this that I might be missing or am I out of luck if I wish to eliminate the Partnership LLC all together and also avoid capital gains tax into a new property? Thanks for all of the feedback!

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