Partnership & LLC 1031 Exchanges
Complex ownership structures require experienced guidance.
1031 exchanges involving partnerships and LLCs often require additional planning. When a property is owned by an entity with multiple members or partners, differences in ownership interests and investment goals can create challenges when planning an exchange.
Accountable 1031 works with investors, partnerships, LLCs, and their professional advisors to help coordinate exchanges involving complicated ownership structures.
Understanding Partnership & LLC Exchanges
Partnerships and Multiple Owners
When investment property is owned by a partnership or LLC, the entity generally owns the property—not the individual partners or members. This distinction is important when structuring a 1031 exchange.
When Partners Have Different Goals
Sometimes all owners want to complete an exchange. In other situations, one or more partners may want to cash out while others prefer to continue investing in real estate. These situations require careful advance planning and professional guidance.
LLC and Partnership Ownership Changes
Changes in ownership, distributions, and entity structures can affect the ability to complete a tax-deferred exchange. Understanding the ownership structure before a transaction begins is essential.
Coordination With Professional Advisors
These transactions often involve CPAs, attorneys, financial advisors, and real estate professionals. Accountable 1031 works alongside the client's advisory team to help coordinate the Qualified Intermediary aspects of the exchange.
Why Choose Accountable 1031?
Partnership and LLC exchanges require attention to details that can easily be overlooked in a standard transaction.
Our team understands the complexities involved and provides hands-on service, responsive communication, and practical coordination. We take the time to understand the transaction and work with the appropriate professionals to help keep the exchange moving.
Have a Partnership or LLC Exchange in Mind?
If your property is owned by a partnership or LLC, it's important to discuss the exchange before entering into a sale or changing the ownership structure.
Contact Accountable 1031 to discuss your situation and learn how we can help.