1031 Exchanges
Market News & Data
General Info
Real Estate Strategies

Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal


Real Estate Classifieds
Reviews & Feedback
Updated almost 7 years ago on . Most recent reply

Complex exchange with many steps
I all I would appreciate any advice from folks that have a background.
My 1031 Intermediary told me to speak with a CPA and the CPA told me to speak to a tax lawyer....
I have been part of an LLC that has owned 2 adjacent properties that are currently in escrow with identical closing dates. We started the LLC 10 years ago and Purchased the 2 properties at the same time for $160K the contract is for $350K and Im looking to pay around 50K in Capital gains taxes federally and to the state of CA. I am trying to defer these by doing a 1031 and have already identified a property that I will have under contract if we get to closing .
It gets more complex because when the purchased occurred I was a 50% shareholder... about 5 years ago I bought 1 partner out 30% so was an 80% shareholder. In April due to life circumstance I bought out my last remaining partner and now am a 100% shareholder but am in the process of dissolving the LLC and doing a quit claim deed to transfer title to my name.
Question # 1 does a quit claim deed from a LLC to a personal holder of title affect the 1031 if it is done prior to closing (even though the quit claim deed was filed during escrow)
I am trying to purchase a property with the "intent as a rental" though (in over 2 years) we may choose to do a "conversion" into a primary residence and definitely plan to keep the new property longer than 5 years.
Question # 2 does the new 2018 tax law have any bearings on this plan. I have done plenty of research but much of it is dated prior to 2018 so am not sure if this plan to convert and then hopefully avoid most of the taxes on the gains if we ever sell gets changes in the new tax law.
I have 3 other rental properties and am thinking about selling 1-3 of these to use capital towards the new rental property.
Question #3 As long as the sale of these other properties occur prior to the closing date of the new property I understand that I can also defer taxes on these other sales, but if they are in escrow and close after the new property closing date can I do a reverse 1031 on these properties using an intermediary even though I am using the exchange already?
thanks for any insights and help with this sequence of transactions. I know there are other investors on this forum who have done several exchanges and this is my first one.