1031 Exchange Ownership Issues & Homesteading

Many taxpayers have questions about 1031 exchanges involving ownership and homesteading. As a way of approaching this topic, let’s consider a hypothetical example. Imagine you did a 1031 exchange from an office into a residential condominium several years ago and that the asset is owned by an LLC that you control. Are you able to homestead this property if it is owned by an LLC?

Homesteading Depends on How the Property is Held

Generally, properties owned by an entity (corporation, partnership, limited partnership, LLC, LLP, etc.) cannot qualify for a relative homestead. This is a relatively complex arena to navigate. It’s a good idea to talk with your team of advisors – your attorney, CPA, and 1031 qualified intermediary about how to best approach this situation in the most tax-advantageous way possible.

Jump Through the Hoops of the 1031 Exchange Process

At CPEC1031, LLC we work with taxpayers throughout the United States on like-kind exchanges of real estate. With more than two decades of experience at our backs, we are well-equipped to help you through the specific details of your unique real estate exchange. Our qualified intermediaries are ready to assist you through the hoops of the 1031 exchange process and help you attain 100% capital gains tax deferral. Find us at our primary office in downtown Minneapolis.

  • Start Your 1031 Exchange: If you have questions about 1031 exchanges, feel free to call me at 612-643-1031.

Defer the tax. Maximize your gain.

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