All Forum Posts by: Jon L.

@Jon L., Your QI is correct. the Scorp must be the tax payer for the new property since it is a regarded entity. However, if you want to use entities that identify with their address you could buy your new properties as single member LLCs that are disregarded to your master LLC. Since they don't file their own tax return the tax payer remains the master LLC.

So 123 Apple Valley Road (the one you just sold), buys their 1031 as 789 main street LLC (the only member is 122 Apple Valley Road and mainstreet LLC does not file a tax return). 123 LLC would also buy to complete the 1031, 654 Oyster Ave(another disregarded LLC where 123 is the only member and Oyster does not file it's own tax return).

This will still be a little awkward for you as 123 LLC (the S corp) owns 789 LLC and 654 LLC. But anytime you sell 789 or 654 you'll be able to 1031 and buy with any other LLC name as long as that LLC is wholely owned by 123 LLC and it is taxed as a sole proprietor.

Dave thank you for your help and taking my call today, very knowledgable!

1 Vote

I have an Arizona single member LLC that files taxes as an S-corp "1120s" I sold that property and doing a 1031 exchange the issue I am having is because I file as an S corp I am told I need to purchase the new property with the exact same LLC. Well that LLC name matches the old property name and makes no sense for the new properties I am buying. I am looking at buying 2 properties so I would have to use that LLC for both properties and again the name matches the property I sold.

Question is how can I put the new properties I am buying into their own LLCs without breaking the 1031 chain. I would like to have them in separate LLCs for liability standpoint. Can I create 2 new disregarded LLCs and have the 1031 LLC that files as an S corp be the member of those LLCs or would that disqualify my 1031?

0 Votes

What is the best rental software for AZ single condo rental. I want to be able to upload AZ specific lease or have one they supply and be able to do all things from start to finish being it is only 1 unit I would like to stay under $10 a month if possible but willing to pay more if it saves me time.

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Hi I just closed on my first rental property and looking for a lease agreement I could use, I am located in Arizona any help would be great!

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All Forum Posts by: Jon L.

Jon L. has started 3 posts and replied 4 times.

Post: How can I have new LLCs for 2 new properties with a 1031 exchange

Post: How can I have new LLCs for 2 new properties with a 1031 exchange

Post: What is the best Rental Software?

Post: Lease Agreement in Arizona