1031 - Transfer Title to LLC - Timing?

[Account Closed]

I’ve searched the forums but can’t find an answer. I’m hoping a season investor or CPA can chime in.

I currently hold title in my own name and have a mortgage in my own name. I'd like to sell my property in a 1031 exchange and hold title on the next property in the name of my newly formed LLC. Can I do this by completing a quit claim to the LLC before sell the initial property? Are there any adverse tax consequences to doing so since I've taken depreciation for 3 years already? Or is the tax deferred as it would be in a traditional 1031?

Additionally, would you recommend a quit claim before or after the 1031 exchange is complete and why?

[Scott Wolf]

Originally posted by @Account Closed:

I’ve searched the forums but can’t find an answer. I’m hoping a season investor or CPA can chime in.

I currently hold title in my own name and have a mortgage in my own name. I'd like to sell my property in a 1031 exchange and hold title on the next property in the name of my newly formed LLC. Can I do this by completing a quit claim to the LLC before sell the initial property? Are there any adverse tax consequences to doing so since I've taken depreciation for 3 years already? Or is the tax deferred as it would be in a traditional 1031?

Additionally, would you recommend a quit claim before or after the 1031 exchange is complete and why?

A QC deed is not necessary. You can sell an individually owned property and buy the replacement property with a disregarded single member LLC (where you are the sole member) with no issues. For tax purposes they are treated as one and the same.