Title change mid a 1031 progression...
I'm planning to create a Living Trust in the near future and get all assets, etc. into it. I know that with properties that have been and will continue to be in a tax deferred state due to 1031 rules, one is not supposed to change the name on title, it must stay as it was on all properties from the first exchange. Is there a legal way to deal with this or not? (Probably not, since the IRS wouldn't be too concerned about their rules inhibiting this issue, since they wouldn't be very supportive of probate avoidance entities anyway.)
If not, my idea is to just make the title change to the trust anyway and the heck with the IRS. I think it is a pretty insignificant point, would go under the radar, and no one would ever know the difference anyway, unless maybe a detailed audit was done.
Any feedback?