1031 Exchange with S-Corporation

1 Reply

Hello Everyone,

I have three S-Corps. Each S-corp has its own property. For reference we can call then Corp-1, Corp-2, and Corp-3. I am the President and 100% Shareholder in each corporation.

Currently, I am closing on a property in Corp-1 and will be doing a 1031. Would it be possible for Corp-1 to purchase properties from Corp-2 and Corp-3 in a 1031?

Thank You

@Jay Chan , I'm guessing that those S corps all have identical or similar share holders and percentages. That would make them related parties. The IRS does not have huge heartburn in selling a property to a related party and doing a 1031 (under certain conditions). But in general they do not like purchasing from a related party to complete a 1031 exchange. You will almost always be tagged with basis shifting and have your exchange disallowed if examined. It's not strictly prohibited. Just heavily scrutinized.