All Forum Posts by: Uzair Syed

Heard Falcon Flooring in Norcross is good 

Thank you for your insight.

Yes the tenants deposited rent into bank account of the LLC (for past 5 years; prior yo that was to parents account).

Ownership seems to be the key.

Yes the LLC was taxpayer but LLC didn't own the relinquished or replacement property.

Will touch base with their QI today, and probably need to involve a CPA who is familiar with 1031. @Ashish Acharya, do you do taxes outside of GA?

@Ashish Acharya Would love for you to chime in if able

Thanks all so far

Reassuring as it seems we can still preserve the 1031

Thank you very much

Just so I am clear on this

Would the LLC being closed make it unable to file future activity ? ie. purchasing the replacement property? ( since the replacement properties were purchased After the LLC was closed)

Or is that not true? And we can leave everything as is (no ammending prior returns) and file tax returns for 2020 (sale of relinquished property) and 2021 (purchase of replacement properties)?

Also, for how long after the exchange does the taxpayer for replacement property need to be same as the taxpayer for the relinquished property? 

- Wondering bc if we do go the route of ammending the prior returns to parents names, but they ultimately do want to put the replacement properties under an LLC

@Dave Foster 

Thank you.

That seems to make sense and is scary (part about incorrect 1031).

My dad did call the state the other day and they mention he could reinstate the LLC?

So is the correct option to reinstate the LLC and file taxes under the LLC for 2020?

The fact that the replacements were purchased under parents names hopefully won't invalidate the 1031? And what is important is how we file the taxes (ie. reinstate the LLC and file under LLC)?

Thank you

Thank you that's helpful

Yes the replacement properties (bought 2) were greater than the relinquished property.

Relinquished property sold in Dec 2020, replacements purchased in 2021...we had filed for tax extension.  

Would that alter any of what you posted?

Wondering if we should use another accountant for this because in speaking with him I got the feeling he wasnt familiar with this, hence my post here.

Hi,

This sounds more like a tax/accounting question but seeing if anyone has any insight here.

My parents just completed a 1031.

Relinquished property and replacement property both under parents names.

Accountant saying we filed taxes for the relinquished property under an LLC my parents had for past 5 years for tax purposes.

Note: the LLC did not own the property; my parents did under their names.

They cancelled the LLC 2 months ago (before replacement property was purchased ).

Accountant saying he's not sure how to file the 2020 taxes since the LLC doesn't exist anymore.

I'm not even sure if this has to do anything with doing the 1031 since the LLC never owned the relinquished property.

Thank you

Thank you.

Wondering if it (bequeathing or Transfer on Death) would in anyway nullify the 1031 exchange if it is bequeathed/transferred to a child who was renting the 1031 property?

@Dave Foster 

PS  Does the 1031 intermediary have to be in the same state as the relinquished &/or replacement property?  Or does it not matter? 

Hi,

I've read prior posts about permissibility of renting a 1031 exchange property to family members (as long as it is fair market rent and well-documented).

Is it permissible for the parents to leave the property in inheritance to the child that was renting the property from them?

Ex: Parents do a 1031 exchange of a multifamily home to a SFR (or commercial property), which they rent to a child at FMV. Then that property is designated as inheritance for that child who is renting it.

Is that allowed?

Thank you