There are two favorable private letter rulings that deal with consolidating ownership. Let’s say a trust distributes one fifth interest in a farm to you and your other four siblings. You could tell your siblings that you’d like to retain the south quarter of the land. You could say that you’re willing to trade your interest in the remainder of the land to the siblings if the siblings give you their interest in the south quarter of the land so that you own that particular spot in its entirety.
Post-distribution from a trust, there’s an opportunity to consolidate a portion of the property in question, solely in your name by doing simultaneous related party transfers. The IRS and treasury seem to think those are OK because you’re trying to consolidate a parcel wholly in your name. In this situation there’s really no intention to trick the system because the other parties that are going to receive your fractional interest in the other parcels if they sell, they’re going to be paying the same taxes that you would’ve paid.
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