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Updated over 1 year ago,

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Erika Richards
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LLC after 1031 exchange

Erika Richards
Posted

Hello, my husband and I had a previous rental property in our name that was never put into an LLC, that we eventually flipped for quite a profit. We then used those funds in a 1031 exchange to acquire 3 more properties that are being used as rentals. We were told that since our original property was not in an LLC we could not place these new properties into one otherwise it would void the 1031 exchange. We want to have some sort of protection from ourselves with these rentals so ideally we would like to put it into an LLC. Is there anyway to do that after the 1031 exchange or is it impossible for tax purposes.

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