Investing In 1031 Exchange Held By Family Member

I have a rental property that is a 1031 exchange. Is there a way that I can add a family member as a 50% investor in this property while avoiding tax liability? I have done some research on creating a LLC but this would not be a single LLC so that approach seems unfavorable.

Thanks for the help in advance.

Comments(5)

  • NewKidinTown211th December, 2004

    Has the exchange been completed, or, are you preparing to initiate an exchange?

  • wexeter19th December, 2004

    Where exactly are you at with the 1031 exchange? Have you sold your relinquished propery and want to add your family member to the replacement property?
    [addsig]

  • theule20th December, 2004

    The exchange is complete and has been for 18 months.

    Thanks again for the help.

  • NewKidinTown220th December, 2004

    Since the exchange was completed so long ago, giving someone a 50% interest in your investment property today should not invalidate the exchange.

  • wexeter23rd December, 2004

    NewKidInTown2 is correct. However, becareful how you do it. It could create a sale transaction, a gift tax issue and/or estate planning issues and may trigger reassessment depending on your local jurisdiction and how you transfer.
    [addsig]

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