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1031 exchange with LLCs involved
We are in the process of selling 5 SF properties in VA and acquiring 1 MF in FL. The VA properties are held in two separate LLCs, 3 in one and 2 in the other. The purchase price of the MF in Florida is much higher than the proceeds from all 5 VA properties combined.
For the 1031 to work, I am told that the 2 LLCs be Tenants in Common in the FL property using the appropriate ownership percentages. Will this approach work?
We also wish to add a third LLC in the TIC which will be responsible for a loan for the FL property, actually it will be serving the seller financing. Hope all this makes sense, things we do to defer taxes!