1031 in personal name to LLC for new property?

[Patrick Shep]

I am looking at planning for a 1031 exchange. I have a property in my own personal name but I would want the new property to be in an LLC with a DSCR loan. How can this be accomplished ?

[Ghassan Jabali]

Hello Patrick,

I hope you're doing great. Generally, we would recommend working with a Qualified Intermediary to make sure the process is done with the loan and complying with the 1031 exchange rules and regulations. One big rule for a 1031 exchange is about ownership interest being with the same owner/taxpayer. Any LLC you are wanting to hold the title would need to be owned by you 100%, directly or indirectly, if the original property is owned by yourself 100%.

Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice. No attorney-client, fiduciary, or professional relationship is established through this communication.