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  • 1.  1031 Exchange - LLC to individual

    Posted 06-23-2016 10:31 AM

    Good morning!  I have a client in the process of performing a 1031 exchange. He is selling a building owned by an LLC (He is the only member).  He would like to purchase 2 properties however to be owned under his personal name (for refinancing purposes).  Is the change in ownership from LLC to an individual allowed under a 1031 exchange?  Thank You

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    NIEUCHOWICZ, CPA PC
    29 South Central Ave
    Valley Stream, NY 11580
    Phone (516) 791-7599
    nieuchcpa@gmail.com
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  • 2.  RE: 1031 Exchange - LLC to individual

    Bronze Most Valuable Member
    Posted 06-23-2016 10:35 AM

    obviously as a SMLLC it's a disregarded entity and form a tax perspective it is owned by an LLC> but if he does not want the LLC name involved then he should just distribute the property out of the LLC to himself personally prior to executing the transaction then the 1031 will be done in his own name.

     

    A distribution of property (other than cash) from an LLC will not result in a taxable transaction.

     

     

     

     

     

    Vincent J. Preto, CPA

    Senior Partner

    Wagner & Zwerman LLP

    450 Wireless Blvd.

    Hauppauge, NY 11788

    Tel. (631) 777-1000 Ext. 340

    Fax  (631) 777-1008 

     

     

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