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Updated almost 4 years ago on .
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1031 Exchange with LLC
Question for 1031 Exchange owned by LLC in North Carolina...
Individual owns Property A in "Property A LLC". He also owns Property B in "Property B LLC". He sells Property A for 70k profit. Can he buy Property B with "Property A LLC" and do a 1031 exchange, resulting in "Property A LLC" owning Property B? Both LLC's are owned by the same person.
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No, my understanding is that 1031 exchanges have to be conducted "at arms length" meaning you can't be closely related parties.