Want to sell my investment property and use 1031 to help sister?
Hi, I'm hoping some can give let me know if this is possible. Until a few days ago, I had never heard of a 1031 exchange.
I have an investment property in my name I will be selling specifically for the purpose of helping my sister purchase a property of her own.
I was going to sell it then hand over a check to her and let her do what she likes with it under the condition that it is for a place she can live in.
It was suggested in a recent conversation with a real estate investor friend that I do a 1031 to avoid paying taxes so my sister can have a larger amount to work with. If I purchase the new property along with my sister, then do a quit claim deed transferring it over to her after closing, it should be possible.
I contacted my account and was told it is not possible to do unless I am the sole owner on the deed.
Which is true? Is it possible to do a 1031 exchange and add a new owner to the new property?
Thank you.