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Updated almost 10 years ago on .
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Question about the reinvesting and bringing on a partner
Say, I'm selling a house for 200K but I owe 80K on it.
As I understand it I have to reinvest 200K to complete the 1031 Exchange.
Could I take the 120K of my money + 30K of my cash + 50K from a partner?
I guess what I'm asking is does that 200K have to come completely from my funds? Or can a portion come from a partner?
Thanks in advance!
J
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#1 1031 Exchanges Contributor
- Qualified Intermediary for 1031 Exchanges
- St. Petersburg, FL
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#1 1031 Exchanges Contributor
- Qualified Intermediary for 1031 Exchanges
- St. Petersburg, FL
Yah income and expense both. - One thing that may be a possibility with your CPAs blessing would be to explore setting it up as a loan to you and after the fact contribute the property into an LLC. Your CPA can direct you on how to add your friend as a member and in what form so as to not trigger a gain recognition and satisfy their desire for ownership/cashflow.
- Dave Foster
