LLCs can be complicated to navigate when considering a 1031 exchange. You have to consider both HOW you hold title and WHERE you hold title.
An LLC can be like a chameleon. They can be treated as corporations, partnerships, sole proprietorships or single-member disregarded entities. Then there’s an unusual geographic disparity that happens when you have community property states (like Wisconsin, Texas, or California) where a husband and wife that file a joint tax return can be considered a single-member for federal tax purposes. An LLC owned by a husband and wife in a community property state can be considered a disregarded entity. In equitable title states (such as Minnesota), a husband and wife in an LLC together would have to file a 1065 and treat the entity as if it were a partnership (or elect corporate treatment).
Talk to a Qualified Intermediary About Your 1031 Exchange
Talk to a qualified intermediary about your next 1031 exchange of real estate and start deferring your capital gains taxes! Section 1031 is a powerful tool that any US taxpayer can use to build wealth over time in continued investment property. Make sure you have all your bases covered by working with a qualified intermediary on your next 1031 exchange. CPEC1031, LLC has been facilitating exchanges under section 1031 of the IRC for decades. Let us handle the details of your next like-kind exchange so you can rest easy throughout the entire process.
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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