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Updated 5 months ago,

User Stats

9
Posts
2
Votes
Alex P.
  • Oakland, CA
2
Votes |
9
Posts

Taking title as individual instead of Single-Member LLC in 1031 exchange

Alex P.
  • Oakland, CA
Posted

Does anyone have advice regarding doing a 1031 exchange, where the goal is to take title back as an individual and dissolve the LLC that the relinquished property was held in (without triggering a taxable event)?

I have sold a property owned by a Single-Member LLC (formed in California) and will be replacing with a portfolio of DSTs. The SMLLC was treated as a disregarded entity for tax purposes (married filing jointly). I would like to take title on the DSTs as an individual and dissolve the LLC for simplification purposes.

Options seem to be:

1) Take title as individual on replacement property

2) Take title as LLC on replacement property, then transfer to individual later

3) Take title as LLC on replacement property, maintain LLC indefinitely

Appreciate advice from anyone experienced in this matter. 

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