[WSBAPT] Q re 1031

[Jennifer Sohn]

I have a client who is engaging in a 1031 exchange. He recently sold real
property that he owned through his living trust. In purchasing the
replacement property, my understanding is that he needs to purchase it
through his living trust (because that is who sold the relinquished
property) or through an LLC where the living trust is a sole member. He
will purchase the replacement property with his children as
tenants-in-common.

Soon after the 1031 exchange, he is planning on setting up an LLC with his
living trust and his children (the tenants-in-common) as members. Does this
transaction (putting his interest into an LLC that is owned not solely by
the living trust but also his children) affect the 1031 tax deferral? My
understanding is that he would not be able to purchase through an LLC that
has multi-members, so I am wondering if he is able to do that right after
the 1031 exchange closes.

Thanks.



-- 

Best regards,



Jennifer Y. Sohn

Attorney at Law

(Licensed in CA and WA)

Sohn Law PLLC

10900 NE 4th Street, Suite 1850

Bellevue, WA 98004

Tel: 206.617.7874

Fax: 425.732.9748

Email: jennifer at sohn-law.com

http://www.sohn-law.com



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