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Updated over 4 years ago,
1031: single private owner --> LLC assistance
HELLO BP land: there must be many many folks whom have done 1031s here and many attorneys and CPAs but I wanted to know...
we have a SFR title is in wifes tax ID (we live in WA but house is in CA [where we used to live]).
we plan to 1031 into a larger MFR property. That property for obvious reasons (liablity protection/ taxes etc.) we want in a LLC.
if wife's tax ID is on the downleg (the SFR) and the LLC would have her as at least 1 of the members or managers of the LLC (say future property is in WA or AZ then it would be WA or AZ LLC) is that good to go ?
Ideally want to have both wife and I as managers of the future LLC (the upleg)... if that;s the case do we both need to be on title on the downleg (the SFR)? in which case i presume I quit claim deed to get me on the title w wife?
do i have to put the property into a LLC 1st and THEN be able to sell ? (so its same LLC entity prior to selling and keep the same entity for the upleg)?
I dont want to create a CA LLC at this point since we are just about to sell and FTB fees etc not likely worth it but we must have LLC for future apt building purchase.
I wonder how others' have done this as I suspect this isnt that infrequent (prior personal residence--turned rental then 1031 that rental into some future rental building)
thanks in advance