1031 exchange with different LLC but same shareholder

[John Hugh]

I have 2 rental properties. One is under A LLC and the other is under B LLC. Both LLCs have the same shareholders. My questions are:

1. When we sell both properties, can we do 1031 to buy one property under B LLC only? That means can we change A LLC to B LLC in 1031 as long as they have the same shareholders? We don't want to do tenant-in-common in this case.

2. All the shareholders are my family members. Can we gift all the member interest to our family trust and still qualify 1031? Shall we gift the membership interest before or after 1031?

Can any of the 1031 experts give us some advice? Many thanks.

[John Hugh]

Thanks for the comments @Dave Foster. When you say using gifting tools to consolidate the properties after 1031 exchange, do you mean deed property under LLC A and LLC B to trust directly? Since trust is a different tax payer (has its own TIN), will this trigger capital gain tax dues?