1031 exchange question

[Aparna Jain]

My client sold a commercial property from an llc in which he is the sole owner and has parked it into a 1031 exchange. He is looking to purchase under a new llc which has him and a partner from another property on it. They were notified by 1031 manager that this cannot be done. What are the possibilities in this case? Can someone here who has expertees in this field give advice.

[Bill B.]

If they didn’t do that your client would be giving away half of his wholly owned property to his partner. 

Your client could probably become a TIC with the 2nd LLC. Make sure your clients’s portion of the property is worth at least as much as the relinquished property.