When conducting a 1031 exchange that involves an LLC, it’s important to involve your CPA or accountant. You need to look at the operating agreement, contribution agreement, and tax returns for the previous years and talk to your accountant to diagnose if this is really a disregarded entity. On top of that, you need to determine whether you’re in a community property state (like Wisconsin, Texas, or California), or if you’re in an equitable property state (like Minnesota, Iowa, or the Dakotas). In community property states, a husband and wife filing a joint tax return can be construed as a single member, even though they’re two separate human beings. An LLC owned by two married people filing a joint tax return in a community property state will be treated (generally) as if it was a single member disregarded sole proprietorship.
Start The Exchange & Defer Your Capital Gains Tax Burden
Start your 1031 exchange of real estate and defer your capital gains tax burden when selling real estate held for investment or business purposes. CPEC1031, LLC works with taxpayers conducting all kinds of 1031 exchanges – from forward exchanges, to reverse exchanges, to construction exchanges. Our intermediaries have decades of experience working with clients from across the United States on their 1031 exchanges. Let us help you through the details of your next like-kind exchange! Contact us at our primary Twin Cities office located 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.
© 2025 Copyright Jeffrey R. Peterson All Rights Reserved