Llc buy in aftet 1031

[David Gravett]

Single member llc did a1031. Can someone buy into the single member thus forming a partnership after the exchange?

[Jon Taylor]

The taxpaying entity that is invested in Real Property has to both sell the relinquished property, then buy the replacement while following all other 1031 exchange rules for the exchange to be deemed viable. 

If, while operating the rental property, there are organizational changes to the LLC without changing the taxpaying entity, that is irrelevant.

If, while operating the rental property, the entity needs to change (ie from LLC to TIC to take on a partner), it is possible to do so - consulting with your RE attorney.

Just remember, the LLC is doing the transaction, not an individual. Whatever org structure you set up during the hold period will impact the next exchange.