Save Your Wallet From Capital Gains Taxes Take Advantage of a 1031 Exchange Through Your LLC!
• MULTI-MEMBER LLCS & PARTNERSHIPS — If one partner of a partnership or an individual member of a multi-member LLC wants to implement a 1031 Exchange for a piece of personal property, they cannot do so. Each member of the partnership needs to have an interest in the piece of property and commit to selling off their interests as a group in order to acquire a like-kind asset together. The same can be said for partners who wish to sell their interest in the partnership in order to acquire a similar interest in another partnership. This would not qualify as a like-kind exchange. However, an entire partnership can do a 1031 Exchange if each member sells or relinquishes their interest in the partnership and, as a group, purchases a like- kind entity, keeping the entire partnership intact. Whether you are an individual, operate a single-member LLC, or are part of a partnership, it’s important to work with a law firm that has experience executing 1031 Exchanges. Contact our team for assistance, and we’ll help you avoid unnecessary taxes that slow down progress and put you in a financial bind.
Many property owners know that a 1031 Exchange (or like-kind exchange) is a great way to dodge heavy capital gains taxes. This method allows you to sell one property and then, in turn, acquire another to serve the same purpose — all while avoiding recognition of the gain or loss on the price of the original property. But did you know that in some cases, Limited Liability Companies (LLCs) can also take advantage of 1031 Exchanges? If your company owns real estate, you may be able to leverage a 1031 Exchange to avoid capital gains taxes. This ability varies across LLC types. • SINGLE-MEMBER LLCS AND LLCS CONTROLLED BY MARRIED COUPLES — Single-member LLCs have the capability and permission to execute 1031 Exchanges. The same can be said for LLCs owned solely in the name of married couples as long as the couple lives in a community property state (California included), although this depends on how the LLC is taxed. These LLCs will have no issue executing the exchange as long as it is conducted according to Section 1031 of the Internal Revenue Code.
Grilled Steak Salad With Peaches
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Inspired by Delish.com
Ingredients • 1 lb skirt steak, fat trimmed • 1/4 cup balsamic vinegar • 1 clove garlic, minced • 1 tbsp light brown sugar • 1 tbsp vegetable oil • Kosher salt • Black pepper
• 1/4 cup extra-virgin olive oil • 1 large lemon, juiced • 6 cups baby arugula • 2 ripe peaches, thinly sliced • 1/3 cup crumbled blue cheese or feta
can create a precious gift for your children, grandchildren, and other loved ones that will preserve your memory for decades to come.
“It takes wealth to buy your desires, but it takes wealth management to keep up the abundance.”
Directions 1. In a large resealable plastic bag or baking dish, combine steak, vinegar, garlic, and brown sugar. Marinate 20 minutes at room temperature. 2. Remove steak from marinade, coat with vegetable oil, and season generously with salt and pepper. 3. On a grill or pan set to high heat, cook steak until desired doneness. Rest 5–10 minutes, then thinly slice against the grain. 4. In a small bowl, whisk olive oil and lemon juice to make dressing. Season with salt and pepper. 5. In a large serving bowl, add arugula, peaches, blue cheese or feta, and steak. Drizzle with dressing and gently toss.
–Sujit Lalwani
3
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