1031 exchange between 2 LLCs I manage.

[Harry Perrette]

I searched the forms but didn't find the info that I am searching for.

We are selling a piece of property for 850,000. We currently own a building that has a loan of 325,000, with a recent appraisal of 400,000. Both of these properties are held in their own LLC. Once the property closes, can company A (owns the property) sell the property to company B (owns the building) and use a 1031 exchange to deffer some of the capital gains taxes? Myself and my father are both managers on both properties and LLCs. We are closing in 2 weeks.

[Dave Foster]

@Harry Perrette, Nope.  Even though the LLCs are different.  They have the same ownership.  So the IRS would look right through that and say that you were trying to buy from yourself.  You can 1031 into something else.  But not between LLCs you own.