1031 Exchange Personal name to LLC

[Michael Dang]

Hello,

Did a search on BP but didn't see exactly an answer for this question.

My parents have a property under my dads personal name. We are doing a 1031 exchange on a property we are selling to purchase a retail plaza property. My parents have a trust setup with both of them as managing members. We would like to setup a new LLC with my parents trust as a member of the LLC. This new LLC would own or be titled with the retail plaza we're purchasing. There will be no financing or loan involved.

Is it allowable sell a personally owned property then use those funds to purchase a new property titled\owned by the LLC within a 1031exchange?

If not allowable, would you recommend purchasing the retail plaza under my dad's name then quit claim or deed it to the LLC?

Cheers,

Mike