We're entering year 11 and $270K depreciation has already been takenand the original basis of the 1031 plus improvements might be $50K.The property has always been held and managed by one individualso Is there anyway to bring in a partner into a LLC or other vehiclethat can avoid triggering the capital gains due to the IRS and Utah?

I'd love to start buying more to hold but had such a hard time getting conventional funding for that deal that I'm trigger shy. 

With this post I hope i can help someone who is new and is considering their 1st purchase get passed paralysis by analysis and pull the trigger!

I had been thinking about buying my first multifamily for years and finally pulled the trigger.

I wish I woulda pulled the trigger back in 1995 to buy a fourplex in Beaverton!!

@Mark HughesAs long as you are not flipping real estate inside your 401k plan, it will not trigger UBIT. https://www.irs.gov/charities-non-profits/unrelate...

I am familiar of the process for changing occupancy and the potential need for a special permit from planning, and the possibility of triggering the need for a fire sprinkler and fire alarm system.

., in general it's fine to contribute property into and distribute property out of an entity after a 1031 exchange is complete providing the transfer does not trigger a gain recognition.In your case it might be even simpler. 

All we are waiting for is a new trigger to set it in motion.

@Ben Leybovich I don't have nearly enough facial hair to be considered sexy by BP standards.