1031 Exchange - Purchase of Single Member

[Pratap Koppula]

Under Section 1031, can we purchase a single-member LLC which owns real estate, or does it need to be a real estate asset with a grant deed under only the company that sold the asset?

[Linda Weygant]

It is **possible** but it has to be structured just right. A single member LLC is a disregarded entity, so depending on how things are titled will depend on whether or not this will work.

I've seen @Dave Foster weigh in on this topic in the past, so hopefully he can pop in here and let you know.