[WSBARP] 1031 & RLT exchange question

[Craig Gourley]

I have been teaching 1031's nationally since 1991. The agent is wrong. Disregarded entities are fine. We do it all the time.

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________________________________
From: wsbarp-bounces at lists.wsbarppt.com <wsbarp-bounces at lists.wsbarppt.com> on behalf of Schmidt & Yee, PC <syaloha at gte.net>
Sent: Monday, January 11, 2021 12:09:52 PM
To: wsbarp at lists.wsbarppt.com <wsbarp at lists.wsbarppt.com>
Subject: Re: [WSBARP] 1031 & RLT exchange question

I just did a similar transaction last October and the 1031 exchange agent required that we had to transfer both pieces of property to the client's name individually stating that the 1031 exchange rules required that the entities had to match exactly, despite the LLC being disregarded for tax purposes on the LLC and the Trust using the client's SS#.  Better call the exchange agent.
Pam Yee
Schmidt & Yee, PC
syaloha at gte.net


-----Original Message-----
From: Claudia A Gowan <claudia at cagowanlaw.com>
To: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com>; WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Sent: Thu, Jan 7, 2021 10:40 am
Subject: [WSBARP] 1031 & RLT exchange question

Colleagues:

A CPA contacted me with concern regarding whether a client had blown an attempt to do a 1031 exchange. It’s beyond my knowledge but I offered to put the question out to those of you who know much more on 1031s.

Client held the relinquished investment property in her revocable living trust, using her SS # to file her returns.

She acquired the replacement property through her single-member LLC – filing as a disregarded entity using her SS#.

The question is will the 1031 exchange work selling from the RLT with the replacement property purchased by the LLC?

Thanks very much. Claudia

Claudia A. Gowan

Claudia A. Gowan, PLLC
2212 Queen Anne Avenue No., # 338 (Mailing only)
Seattle, WA 98109
(206) 443-2733 (T)
claudia at cagowanlaw.com<mailto:claudia at cagowanlaw.com>

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