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Updated 7 days ago on .
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Quit claim property under my name to an LLC owned by both trust
Greetings,
Trying to determine how would be the best way to approach the quit claim of a property purchased with 1031 proceeds into a LLC. Here's the backstory:
I recently (Jan 2025) closed on a single family home in Indiana. This property was purchased through a 1031 exchange. I am the named purchaser for the purpose of the 1031 exchange. Since this would be a short-term rental, looking to quit claim the property to a single member LLC owned by me. The challenge is that the single member LLC would be owned by a Delaware LLC which itself is owned by mine and my husband's trusts.
How can transferring to a LLC to achieve liability protection be done without compromising the 1031 tax benefits? The concern is that current structure with my husband’s trusts may be an issue as an additional beneficiary owner.
Appreciate any guidance provided!