1031 exchange company to Recomend ( NYC or NJ)

[Liz C.]

Hi investors, I am selling a property that is under my personal name and buy property which is hold by my LLC in New York who's memeber is another LLC that I own 100% it's share. Is that allowed. Anyone has a very good 1031 exchange individual that can Recomend to me? Thanks

[Dave Foster]

@Liz C., I know I sent this via im but for the benefit of the group I need to clarify something. In re-reading your post I see that you're wanting to buy your replacement property from an LLC that is owned by an LLC that you are the sole member of.

No matter which way your LLC was treated I don't think that's going to work. If the LLC is disregarded then you would be the tax payer on both counts and would in essence be trying to buy your replacement property from yourself. That's not going to fly.

If that LLC does file a tax return you are still owner of more than 50% so you would be buying from a related party which again in a 1031would lead to a charge of basis shifting and would not be allowed.

That is if I'm reading it correctly this time :)