1031 Exchange Question

[Howard C]

I just sold a property and have the funds with an intermediary. The title of the property was under my personal name. If I purchase the exchanged property under a LLC, which I'm the sole owner of, will that cause any issues with the deferred capital gains?

Any advice would be greatly appreciated, thank you.

-Howard

[Lance Lvovsky]

You are good to proceed with your purchase of the property in a single member LLC. Generally, title to the replacement party must be the same as the title of ownership on the relinquished property. However, the beauty of tax law is there are exceptions. The IRS has ruled that exceptions apply to disregarded entities (single member LLC), Revocable Trust, and Delaware Statutory Trust. As such, you can take title in a single member LLC.