1031 exchange related party

Comments: can my llc buy my mortgaged property under sole prop.as a 1031 exchange.

Dear Joe: If I understand, you want an LLC that you own at least 50% of to buy as replacement property in a 1031x another property that you own in your individual name. This transaction, in general, would be prohibited by the IRS. In very limited circumstances it would be allowed. Those circumstances would be: 1) If you, in turn, did another 1031x as you sold to your LLC, or 2) If you were reporting a large gain on the sale of your property to your LLC. If neither of these circumstances exist for you then the transaction would not qualify for tax deferral. Sincerely, Steve Hickox
Attorney / President

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