An LLC client did a 1031 exchange about 7 years ago. They sold 1 property and purchased 3 Properties. The 3 properties were in single member LLC's owned by the original multi member LLC.
In 2022, another 1031 exchange was done for one of the properties. Another single member LLC was created owned by the single member LLC that owned the exchanged property.
The original single member LLC has a bank account that has a $2,000 balance (to eliminate bank charges). The New LLC has no bank account. There is a managing agent for that building who send a check once a month to the original multi member LLC
That being said, the client wants to know if the original single member LLC (with the $2,000) can close the account. I told her it was a legal question...
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Michael Rubinstein
Michael D. Rubinstein CPA, PC
North Bellmore NY
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