1031 and a bank account

[Jennifer Bayhi Gennaro]

Stay with me here.... My husband and I own a piece of real estate that we are selling. We are exchanging into a trailer park, where we will have a 50/50 partner. In order to do the exchange, we cannot form a new LLC with the partner--the exchange attorney says we must each form a separate LLC which will have its own undivided interest in the park. But if we each have our own LLC with its own EIN, which EIN do we use to start a bank account for the shared investment?

[Lance Lvovsky]

I typically advise my clients in this situation is to complete the exchange in their own name, then "contribute" the property to a new LLC that has the 50/50 ownership. The other LLC member can make a contribution for consideration of his/her interest in he new LLC.

Nevertheless, I would get with a CPA and/or attorney who can advise you accordingly