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Updated over 5 years ago,

User Stats

34
Posts
17
Votes
Steve Shaffer
  • Investor
  • Fargo, ND
17
Votes |
34
Posts

1031 single tax-payer question

Steve Shaffer
  • Investor
  • Fargo, ND
Posted

Hello fellow nerds!  I'm trading up into a 15-unit and selling a single family and a 4-plex to help fund the purchase.  I'm using a 1031 and all three properties are held in different entities with separate EIN's.  I am 100% owner on everything and am using the single tax payer exclusion to pull of the 1031.  

My question is how soon/what is the mechanism for selling equity in the 15-unit after I close. I have taken in private money in the past as debt, but have never sold equity. The plan is to sell 30% of the LLC that will own the 15-unit to a fellow investor, but I'm concerned about this somehow poisoning the single taxpayer exclusion thing. Anyone know anything about it? If there's an interval I need to wait etc? Thanks in advance!