1031 exchange for a purchase of a Mobile Home Park

[Mark B.]

I am selling a SFR Rental that I have had for 10years. Bought it for 200K, can sell it for 250K. I am buying a Mobile Home Park For 155K. I would like to transfer the SFR into a LLC before I sell it. Then when I buy the MHP for 155K, bank the balance in the LLC bank account and use the balance over 2years to improve the MHP. Can I do these $$ amounts for a 1031 exchange?

Thanks

Mark B.

[Natalie Kolodij]

Originally posted by @Mark B.:

I am selling a SFR Rental that I have had for 10years. Bought it for 200K, can sell it for 250K. I am buying a Mobile Home Park For 155K. I would like to transfer the SFR into a LLC before I sell it. Then when I buy the MHP for 155K, bank the balance in the LLC bank account and use the balance over 2years to improve the MHP. Can I do these $$ amounts for a 1031 exchange?

Thanks

Mark B.

 Hey Mark, 

Since you're selling for something LESS expensive you're going to pickup boot. That income is going to be taxable whether you later user it to improve the MHP or not. 

The LLC has no impact on this.

@Dave Foster can confirm.