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.
You and your SMLLC are the same for tax purposes.
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.
Originally posted by @Hen Ley :
So, the primary residence would be sold to the LLC to then be used as an investment property.
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 👍
@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 , Thanks so much for your insights, much appreciated!
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.
@Hen Ley not sure but wouldn’t the arm’s length rule apply here?
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