Can you use different names on the titles using a 1031

[Tricia Plank]

Can I use a 1031 exchange to sell property in "my name", put the funds with a QI who then purchases new property in the name of an LLC I form with someone else? I believe the answer is no because there would be different taxpayers on the title but any thoughts?

[Dave Foster]

@Tricia Plank, exactly right. a 2 member LLC has to be treated as a partnership and file it's own tax return. It is a separate taxpayer. Selling as yourself and buying as that multi-member LLC is changing taxpayers.

If you wanted to purchase as a single member LLC that elects to be taxed as a sole proprietor. then that LLC will not file it's own tax return. And you would still be the taxpayer. The property will not change tax returns. After the fact you can work with your accountant to add the second member to the LLC.