1031 splitting from shared ownership
Hi all,
Back in 2004, my brother and I acquired a rental property. We split it 50/50 and continue to this day. We aren't structured as a partnership or LLC, just two bros who bought a house together.
Fast forward to today, we are discussing an exit strategy, specifically tax deferment and going our separate ways. I’ve searched the web and forums here without luck so here are my questions:
1. If we sell the property and want to effectively end our co ownership, would we each do our own 1031 exchange? Or do we continue to have responsibility to purchase like kind property together?
2. After a 1031 exchange from and to a SFH rental property, can you hold the new investment for awhile and then convert it to your primary residence? If so, could you sell after two years of using it as your primary residence to get the tax shelter for capital gains on the sale of your primary?
Thanks all, I know I should probably consult a professional but wanted to get some initial feedback. Thanks in advance!
Jim