We are working with a client that would like to 1031 exchange out of a property that recently went through the Eminent Domain process for a road-widening project in front of the property. Ideally, they want to combine funds from both transactions into one exchange property. Is this possible?
The property is owned as an LLC. How does that complicate the ability to do individual exchanges? Would they have to convert to a TIC in order to go their separate ways? If so, how long would the process take?
The short answer is yes. This is possible by doing a 1031 / 1033 exchange combo. However, the “value” of the Replacement Property may need to be high enough to cover both a 1033 and 1031.
1031 Exchange Company
Looking for assistance with your 1031 exchange? You’ve come to the right place! At CPEC1031, our qualified intermediaries have over two decades of experience facilitating transactions under section 1031 of the Internal Revenue Code. We can help you through the entire process and ensure that you are well-prepared for the closing table. Contact us today at our downtown Minneapolis office to learn more!
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.
© 2019 Copyright Jeffrey R. Peterson All Rights Reserved