Rental Investment Property from Personal name to LLC 1031 exchange

[Kamal Sukhija]

Greetings everyone!

We own a rental investment property in our personal names which we intend to sell and do a 1031 exchange to buy a commercial NNN property. Would like to purchase the NNN property in the LLC name.

Do we need to transfer the deed for the rental property to LLC name before we sell ?

Any recommendation on how to go about this, is highly appreciated.

Thank you all.

-Kamal

[Jon Taylor]

The key requirement for a 1031 exchange is that the taxpaying entity must remain the same. If the LLC is a single-member LLC, it is considered a disregarded entity for tax purposes, meaning the taxpayer remains the same (under the same Social Security number) and there would be no reason to change title prior to the sale. Make sure to consult with your CPA before making any changes.