@mellish7777 wrote:
.where do you see a 1031 exchange in the question?
It is in the title. Just because it is a residence would not prohibit a 1031 exchange for the business part. But assuming a OP did not use a third party intermediary, it would not qualify.
As the others mentioned, the Multi-Member LLC should NOT have been directly claiming an office deduction. It could have had an Accountable Plan to reimburse the costs, or in some cases the deduction could have been taken on the Schedule E as "Unreimbursed Partnership Expenses". As was also mentioned, you need to go to a tax professional, and even more so because it was the final year of a Partnership.
