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commercial real estate sale to another LLC

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  • commercial real estate sale to another LLC

    Can I "sell" a commercial property I own in LLC #1 to another corp I own LLC#2 (both owned 50% with spouse) ? I would do a 1031 exchange for LLC1 with a cash out refinance and use the proceeds for a down payment on a new property, then LLC#2 would now own the original commercial property and have its own cost segregated depreciation schedule of the original property but owned by llc #2?

  • #2
    So the idea is to basically do a refinance while also resetting the cost-seg? No idea. Seems unlikely. It also seems unlikely that it would actually be cost-effective. Definitely ask a CPA that specializes in RE and 1031s, not a bunch of bumbling people on an internet forum. Give us an update, though!


    • #3
      Who knows. Trump organization CFO may have an opinion on it too.

      Seriously - engage a reputable real estate lawyer/accountant on this.


      • #4
        You are crossing into related party territory. The likely outcome is a negative. Spend some bucks and get a “no” that is acceptable.


        • #5
          I'm not a CPA but I would say no. It's just a shell game with the same ownership in both LLCs