Can I 1031 exchange out of property held in one Title Holding Trust and buy property held in a different Title Holding Trust?
Yes, as long as the underlying beneficiaries of both Title Holding Trusts are exactly the same the transaction will qualify for tax-deferred exchange treatment under Section 1031 of the Internal Revenue Code. And, both properties do not need to be held in a Title Holding Trust. You could sell relinquished property that was held in a Title Holding Trust and acquire replacement property that was held in your individual name as long as the individual was also the beneficiary under the Title Holding Trust.
