No, an LLC member interest, where the LLC elects to be treated as a partnership, or partnership interest is considered personal property and cannot be exchanged.  IRC Section 1031(a)(2)(D) specifically prohibits the exchange of partnership interests.  However, both an LLC or partnership (or any other entity for that matter) can do a 1031 exchange on the entity level, meaning the entire partnership relinquishes a property and the entire partnership stays intact and purchases a replacement property.  If you are in a situation where some LLC members or some partners would like to exchange, but others don’t, consult with your tax or legal advisors and discuss the issues involved with strategies and the timing of performing what is known as “drop and swap” or a “swap and drop” alternatives. In a community property states only, a husband and wife who are the sole members of a two-member LLC may be considered a single-member disregarded LLC for Federal tax purposes – check with your tax or legal advisors to discuss this more thoroughly. Read the full article, Partnerships and 1031 Exchanges.