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Transferring the 1031 replacement property to a Single Member LLC woudl not change the basis in the transferred property nor would it cause the tax deferred treatment of the 1031 to end.
A 1031 exchange followed by a transfer to a single-member LLC (ignored by tax purposes) has passed the Tax Court held that the transfer does not invalidate the tax-free nature of the exchange.
Maloney v. Commissioner,
The court explained that the corporation merely changed the form in which Elysian Fields was held from a corporation owned 100 percent by the individual to the individual’s 100 percent ownership
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