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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 12477
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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Can stock in an Llc qualify for a 1031 exchange for public

Customer Question

Can stock in an Llc qualify for a 1031 exchange for public ally traded stock in a corporation ?
JA: The Accountant will know how to help. Please tell me more, so we can help you best.
Customer: Publicallybtraded company wants to buy stock in an a privately held Llc that owns real estate. Not a sale of assets. A sale of stock. Does the Llc get 1031 exclusion?
JA: Is there anything else the Accountant should be aware of?
Customer: Real estate Llc has mortgage payable. Will the exchange of stock in Llc with publicallybtraded company get 1031 protection?
Submitted: 4 months ago.
Category: Tax
Expert:  Lane replied 4 months ago.

Hi. I'm lane.

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So sorry, no.

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Certain types of property are specifically excluded from Section 1031 treatment. Section 1031 does not apply to exchanges of:

  • Inventory or stock in trade

  • Stocks, bonds, or notes

  • Other securities or debt

  • Partnership interests

  • Certificates of trust

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You can read more about that here:https://www.irs.gov/uac/like-kind-exchanges-under-irc-code-section-1031

Expert:  Lane replied 4 months ago.

Please let me know if you have ANY questions at all, before rating me.

I hope you’ll rate me (using those stars, or faces on your screen, by clicking submit) based on thoroughness and accuracy, rather than any good news / bad news content.

Otherwise I’ll receive no compensation for the time & expertise here at all, from JustAnswer.

Thank you!

Lane

..

I hold a law degree, with concentration in Tax Law, Estate law & Corporate law, an MBA in finance, a BBA, and CFP & CRPS (Chartered Retirement Plans Specialist) designations, as well - I’ve been providing financial, Social Security/Medicare, estate, corporate, non-profit, and tax advice to clients on three continents since 1986.

Customer: replied 4 months ago.
Would ownership interests apply in the same scenario? Any way the transaction would qualify?
Expert:  Lane replied 4 months ago.

Ok, first let me make sure I'm understanding.

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If the ownership interests are (1) individually owned (2) replacement property and property given in exchange like kind in nature, and (3) ownership is the same (in property given up in exchange and replacement property)...

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Yes, it will qualify

Expert:  Lane replied 4 months ago.

...

I’m just checking back in to see how things are going.

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Did my answer help?

If this HAS helped, and you DON’T have other questions … I'd appreciate a positive rating (using the stars or faces on your screen, and then clicking “submit")

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But if you need more on this, please let me know.

Lane

Expert:  Lane replied 4 months ago.

Did you see my answer?

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Need more here?

...

If not, I hope you’ll rate me (using those stars, or faces on your screen, and clicking submit) based on thoroughness and accuracy, rather than any good news / bad news content.

...

Let me know,

Lane