Colleagues, Looking for some confirmation/clarification of the intersection of real property, MAPTs, and 1031 Exchanges. Clients wishes to include low value, out-of-state rental properties in an MAPT. There are no mortgages; however, one owned by the husband, individually, was subject to a prior 1031 Exchange It is my understanding is that a property subject to a 1031 exchange must be continuously owned by the same purchase in order to retain the preferential tax treatment. A revocable trust works as it is a pass-through entity. Irrevocable trusts, on the other hand, might cause problems. We draft MAPTs to be grantor trusts for income tax purposes and for estate inclusion, however, I would think such a transfer would be permissible. Assuming I am correct, my initial thought was that the husband would have to transfer the 1031 property to his individual trust, so as to retain the tax benefit of the 1031 exchange. Upon reflection; however, since they filed joint federal and state income tax returns, I began to wonder if this is necessary? My guess is still yes, but I would appreciate anyone's input. Thank you, Sean -- Sean C. Eccles, Esq. The Law Office of Sean C. Eccles 276 Fifth Avenue, Suite 704 New York, NY 10001 + 1 (917) 387-4855 Sean.Eccles.Law@gmail.com P Please consider the environment before printing this email. *CONFIDENTIAL: *This message is confidential. It may also be privileged or otherwise protected by work product immunity or other legal rules. If you have received it by mistake, please let us know by e-mail reply and delete it from your system; you may not copy this message or disclose its contents to anyone. Please send us by fax any message containing deadlines as incoming e-mails are not screened for response deadlines. The integrity and security of this message cannot be guaranteed on the Internet