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Hi Claudia, It is fine. Both entities are disregarded for tax purposes. <span id="ms-outlook-android-cursor">
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<div id="divRplyFwdMsg" dir="ltr"><font face="Calibri, sans-serif" style="font-size:11pt" color="#000000"><b>From:</b> wsbarp-bounces@lists.wsbarppt.com <wsbarp-bounces@lists.wsbarppt.com> on behalf of Claudia A Gowan <claudia@cagowanlaw.com><br>
<b>Sent:</b> Thursday, January 7, 2021 10:40:21 AM<br>
<b>To:</b> WSBA Real Property Listserv <wsbarp@lists.wsbarppt.com>; WSBA Probate & Trust Listserv <wsbapt@lists.wsbarppt.com><br>
<b>Subject:</b> [WSBARP] 1031 & RLT exchange question</font>
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<p class="x_MsoNormal"><span style="color:#1F3864">Colleagues:</span></p>
<p class="x_MsoNormal"><span style="color:#1F3864"> </span></p>
<p class="x_MsoNormal"><span style="color:#1F3864">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.</span></p>
<p class="x_MsoNormal"><span style="color:#1F3864"> </span></p>
<p class="x_MsoNormal"><span style="color:#1F3864">Client held the relinquished investment property in her revocable living trust, using her SS # to file her returns.</span></p>
<p class="x_MsoNormal"><span style="color:#1F3864"> </span></p>
<p class="x_MsoNormal"><span style="color:#1F3864">She acquired the replacement property through her single-member LLC – filing as a disregarded entity using her SS#.</span></p>
<p class="x_MsoNormal"><span style="color:#1F3864"> </span></p>
<p class="x_MsoNormal"><span style="color:#1F3864">The question is will the 1031 exchange work selling from the RLT with the replacement property purchased by the LLC?</span></p>
<p class="x_MsoNormal"><span style="color:#1F3864"> </span></p>
<p class="x_MsoNormal"><span style="color:#1F3864">Thanks very much. Claudia</span></p>
<p class="x_MsoNormal"><span style="color:#1F3864"> </span></p>
<p class="x_MsoNormal"><b><i><span style="font-size:12.0pt; font-family:ParkAvenue; color:#1F3864">Claudia A. Gowan</span></i></b></p>
<p class="x_MsoNormal"><b><i><span style="color:#1F3864"> </span></i></b></p>
<p class="x_MsoNormal" style="line-height:9.0pt"><b><span style="color:#1F497D">Claudia A. Gowan, PLLC</span></b></p>
<p class="x_MsoNormal"><b><span style="color:#1F497D">2212 Queen Anne Avenue No., # 338 (Mailing only)</span></b></p>
<p class="x_MsoNormal"><b><span style="color:#1F497D">Seattle, WA 98109</span></b></p>
<p class="x_MsoNormal"><b><span style="color:#1F497D">(206) 443-2733 (T)</span></b></p>
<p class="x_MsoNormal"><b><span style="color:#1F4E79"><a href="mailto:claudia@cagowanlaw.com"><span style="color:#1F4E79">claudia@cagowanlaw.com</span></a>
</span></b></p>
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<p class="x_MsoNormal"><a href="https://www.bestlawyers.com/lawyers/claudia-a-gowan/141568"><span style="color:#0563C1; text-decoration:none"><img border="0" width="164" height="55" id="x_Picture_x0020_1" src="cid:image003.jpg@01D6E4E1.7EA42730" style="width:1.7083in; height:.5729in"></span></a><span style="color:#1F3864"></span></p>
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<p class="x_MsoNormal"><b><u><span style="color:#1F4E79"><a href="http://www.seattletrustsandestates.com/"><span style="color:#0563C1">www.seattletrustsandestates.com</span></a></span></u></b><span style="color:#1F3864"></span></p>
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<p class="x_MsoNormal"><b><u><span style="color:#1F497D">Recognizing the risk of coronavirus for our clients and colleagues, we are working remotely. Our direct email and telephone contact information, which has not changed, along with a permanent mailing
address is noted above.</span></u></b><span style="color:#1F3864"></span></p>
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