In a 1031 exchange, the general rule is you can’t exchange into that which you already own because that wouldn’t be an “exchange.” But what if you’re in a partnership or LLC and you want to buy out all of the other partners, and you want to use your 1031 exchange funds for that purchase and consolidate 100% of the ownership in your sole name?
Revenue Rule 96-6 is your friend in this scenario. It tells us that when you consolidate 100% of a partnership and make it into a disregarded entity that you’re basically deemed to have acquired the real estate of the exiting partners. This is a great planning tool to consolidate partnerships and take control of the project for yourself.
Defer Capital Gains Taxes with a 1031 Exchange
Defer your capital gains tax bill when selling investment real estate by conducting a 1031 exchange rather than a straightforward sale. CPEC1031, LLC has been working on 1031 exchanges for decades. We can help you through the entire 1031 exchange process – from the sale of your relinquished property to the identification and acquisition of your replacement property. Contact us today to learn more about the many benefits of section 1031 and see how you can save money on capital gains taxes when you sell qualifying real estate.
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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