1031 Exchange into Partnership

[Pete Harper]

I have a question on 1031 exchange. I own a property in CA in my own name. I would like to sell the property and use 1031 exchange to purchase a property in TX. The TX property is worth significantly more than the property in CA. To cover the difference I would like to bring in another partner on the TX property. Is this possible?

The last 1031 exchange I did we sold in CA in our name, purchased property in TX in our own name, then transferred into TX LLC. It was explained to me at the time that the LLC transfer had to occur in TX otherwise CA would see the transfer as a taxable event.