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1031 exchange from personal to llc?
Howdy BiggerPocketeters?
Fast forward 4 years since this posting https://www.biggerpockets.com/...
Now my house in Santa Clara has appreciated but I have a little tough time finding tenants. I am wondering if I can do a 1031 exchange to leverage the built in equity (around 1M) to finance and take a much larger loan to buy a MFH property in Santa Clara itself? And also can I use a LLC to take the new bigger loan so as to protect my own home?
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- Qualified Intermediary for 1031 Exchanges
- St. Petersburg, FL
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@Andy Bills, The 1031 exchange is perfect to use your equity as a down payment to purchase a larger property. And you can also move the property from ay type of investment property into any other type.
If you own the property in your name right now then you are the taxpayer (because it is reported on your personal tax return). You also have to be the tax payer for the new property. However, you could us a "disregarded LLC" (a single member LLC that chooses to be taxed as a sole proprietor which means it doesn't file it's own tax return). With a disregarded LLC the property is till reported on your personal tax return so even though it is deeded to the LLC you are still the tax payer.
- Dave Foster
