1031 and LLC

[Konrad R.]

I'm just starting out, so I haven't setup my company structure yet. I've read a few people that suggest just putting the properties in your name and then maximizing insurance. I would like to have more protection under an LLC. Is there a way to transfer a 1031 property that is in my personal name into an LLC? The property will be a rental, so I'm worried about liability.

[Dave Foster]

@Konrad R.contribution of personally held property into a business entity typically does not trigger a tax event. In addition you are probably thinking to set up a single member LLC which can be structured as a disregarded pass through entity. All activity of the property is still reported on your personal return so in the eyes of the IRS the taxpayer is the same - so no tax event. But the theory is that by deeding it to an LLC entity you garner the same liability protection you're looking for.

You can set up your own Florida LLC at www.sunbiz.org