Investing In 1031 Exchange Held By Family Member
I have a rental property that is a 1031 exchange. Is there a way that I can add a family member as a 50% investor in this property while avoiding tax liability? I have done some research on creating a LLC but this would not be a single LLC so that approach seems unfavorable.
Thanks for the help in advance.
Has the exchange been completed, or, are you preparing to initiate an exchange?
Where exactly are you at with the 1031 exchange? Have you sold your relinquished propery and want to add your family member to the replacement property?
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The exchange is complete and has been for 18 months.
Thanks again for the help.
Since the exchange was completed so long ago, giving someone a 50% interest in your investment property today should not invalidate the exchange.
NewKidInTown2 is correct. However, becareful how you do it. It could create a sale transaction, a gift tax issue and/or estate planning issues and may trigger reassessment depending on your local jurisdiction and how you transfer.
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