Impossible 1031 Exchange?
Hi, I need a second opinion regarding a 1031 exchange in California. I have been
told I cannot do an exchange but I want to see if there is a way. Anyways, I own 1/14 share in a partnership that is
set up as S-corp. The 14 partners are likely splitting up after the sale, but I would still
like to do an exchange on my 1/14 portion .. Is
there a way? Thanks
what is the "like kind"?
There is a way if ownership is as Tenants In Common. Investments with many owners on title have become quite popular in recent years since it has been clarified that each owner can exchange his/her portion of ownership using a 1031 exchange.
There may be difficulty if the S-corp owns the property and you own shares in the corporation. The problem being that it may not be possible to change the form of ownership without triggering a taxable event.
You might talk to someone who deals with TIC invesments (they are easy to find) to see how these are done to provide limited liability for the ownership. Also, Bill Exeter may respond on this. He has an exchange company in Southern California and usually responds with definitive authority.
Sorry , the SCORP holds an office building in the SF Bay Area.
I would see a layer or CPA for the best was to dispose of the s-corp shares.
If it is your LLC then the LLC would quit claim it to you "X llc and Bryan lastname".
If you are the owner of the llc you do not need to give survivorship rights.
The form printed fine, and I will drop the survivorship part.
Thank you both for the help, Brian
Awesome, I stay current so should be no problem then.
Thanks,
Eric