1031 Exchange and Capital Gains

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Name:Steven Hickox
Location:Denver, Colorado, United States

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Monday, January 09, 2006

1031 exchange and transfer to LLC

Hope you had a good holiday.   Quick question for you:  I am thinking about transferring two properties, both acquired in 1031 exchanges, into an LLC.  Do you know of any downsides or pitfalls in such a transfer? Many thanks, K.

 Dear K:  Transferring your replacement property into an LLC of which you are the sole member is perfectly ok.  A single member LLC is a "disregarded entity" for tax purposes.  Therefore transfer into it will not effect the 1031x.   If you are planning to transfer your property into an LLC with other members please contact me further.  Sincerely,

Steve Hickox
Attorney / President

posted by Steven Hickox | 10:35 AM