use 1031 exchange to buy out bus. partner on other properties

[Brad Bass]

I'm wondering if I can use the proceeds of a 1031 exchange to buy out a business partner on properties I already partly own. I want to sell a property I fully own and use the proceeds to do this. We are currently 50/50 partners on the other properties, but the ownership is structured in that some are in an LLC and some are under our personal names as tenants in common. I would have a real estate lawyer worry about the details, but at this point I'm wondering if this is something that can be done, or if there are other alternatives that may be equally beneficial in deferring capital gains? Better yet, if you have experience doing something similar I would love to hear about how it all worked!

[Daniel Dietz]

@Dave Foster I am reading your comment as 'not MORE than 50%'. I take it that means if you are each an even 50-50% that it works? What I am getting at is if I had a choice of owning with either 2 partners (50-50) or 3 partners (33-33-33) that there is NO advantage to going to the 3 person structure to be 'LESS than 50%'?

My other deal that we were talking about here fell through, but have some good things in the works right now. I'd be going in with a partner on several properties who would want out in 10-15 years, and I would like to be able to buy them out at that time using 1031s of other properties. As things progress I'll be giving you a call.

Thanks for all you contribute here too.

Dan Dietz