Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 54%
$32.50 /mo
$390 billed annualy
MONTHLY
$69 /mo
billed monthly
7 day free trial. Cancel anytime
×
Take Your Forum Experience
to the Next Level
Create a free account and join over 3 million investors sharing
their journeys and helping each other succeed.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
Already a member?  Login here
Buying & Selling Real Estate
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated 4 months ago on . Most recent reply

User Stats

1
Posts
2
Votes
Chase Leibfritz
2
Votes |
1
Posts

Can two people sell separate properties and 1031 exchange into one w/LLC parnership?

Chase Leibfritz
Posted

Here is the quick question: My mother in law is looking to sell bare land in Idaho that is owned outright. It is expected to bring 750k. I have a property that I am selling in Utah at 630k. Is it possible for us to form an LLC and 1031 these into one 1.5 million dollar property in Oregon so long as we abide by the timing guidelines concerning the exchange. TIA

Most Popular Reply

User Stats

39
Posts
36
Votes
Replied

Hey @Chase Leibfritz, You can't do this directly. As Chris mentioned, the taxpayer has to stay the same between the 1031s. However, you have two options to solve this. 

You can do a 1031 to a TIC (tenants in commons) with your MIL, where you will both own a proportional share in the property. This comes with some other ramifications around legal liability and the ability to get a mortgage on the property.

The other way to fix this is to create an LLC now, and both you and your MIL contribute the current properties into the LLC, then the LLC 1031 exchanges the old properties into the new property. I tend to prefer this route.

If you want to hop on a call and go over specifics I am available most of this week. I am a 1031 exchange facilitator

Loading replies...