Can you sell a property from yourself to you llc for 1031?

Question

Wondering if you can sell an investment property that's in a SMLLC (with the intent of doing a 1031 exchange) and then for the new purchase, buy a property that you own personally? So, the primary residence would be sold to the LLC to then be used as an investment property.

Natalie Kolodij · Answer

No.

You and your SMLLC are the same for tax purposes.

Mike Dymski · Answer

I can't understand your question...but, you can 1031 from investment property A into investment property B and then later convert property B into your primary residence (rules apply). Some do this to purchase their dream retirement home.

Steve Vaughan · Answer

Can't 1031 primary residences and wouldn't want to anyway if you've occupied for at least 2 years. Tax-free gain up to $500k If married 👍

Rob Pecha · Answer

@Hen Ley not sure but wouldn’t the arm’s length rule apply here?

Hen Ley · Answer

@Natalie Kolodij, Thanks so much for your insights, much appreciated!

Hen Ley · Answer

@Steve Vaughan, thanks, but to clarify, the primary would be a purchase, jut like buying any primary residence from a stranger and making it an investment property.

Natalie Kolodij · Answer

There is a way to potentially do something similar utilizing an S corporation- but it requires sitting down with a tax pro to work out the logistics correctly.

Can you sell a property from yourself to you llc for 1031?

Can you sell a property from yourself to you llc for 1031?

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