Legal Question in Business Law in New York

I own a home in my name for many years I want to put it in an LLC. I want To sell and buy using a 1031 exchange. Is this allowed ..?

Asked on 3/03/21, 6:31 pm

1 Answer from Attorneys

Richard Bryan Richard Bryan Attorney PC

Section 1031 of the Internal Revenue Code provides a way for people to defer income taxes when investment property is sold and a different investment property is purchased. This is commonly known as a "like-kind" exchange, and it's only available for investment properties, not your primary residence. So if you owned a building with rental units, you could sell that building and purchase a shopping center, for example. These types of properties are considered "like-kind" under the rules. But your home doesn't qualify for this preferential treatment because it's not an investment property. Transferring your home from your own name and into an LLC won't convert it from a personal use residence into an investment property. Good thinking though!

Good luck.

Read more
Answered on 3/04/21, 5:11 pm

Related Questions & Answers

More Business Law questions and answers in New York