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

[Chase Leibfritz]

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

[Jackson Hanssen]

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