1031 Tax Exchange using an LLC

[Louis Carbone]

I own a commercial building with my spouse as an LLC. We file a partnership tax return for the LLC and its not treated as a disregarded entity and have a very low basis. I have been approached by an Investment group that would like to purchase 50% of the property. Rather than selling them 50% interest in the LLC, I was contemplating selling/transferring a 50% tenancy in common interest to them where my existing LLC would remain a 50% tenant in common owner with their new entity (LLC) which would own the other 50% as a tenant in common. The question is with the sale proceeds I receive for the 50% sale of the interest in the property can I do a 1031 tax exchange and purchase another investment property and how can i go about doing this, if possible or is there another solution.