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  • 1.  a 1031 issue regarding bank accounts

    Platinum Most Valuable Member
    Posted 12-06-2022 11:59 AM
    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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  • 2.  RE: a 1031 issue regarding bank accounts

    Posted 12-07-2022 12:40 PM
    If I'm reading this right, this involves two disregarded entities, so I see no problem with closing the bank account.

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    Matthew E. Rappaport, Esq., LL.M.
    Vice Managing Partner
    Chair, Taxation Group
    Falcon, Rappaport & Berkman PLLC
    (516) 558-3377
    mer@frblaw.com
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    Original Message


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