1031 exchange: multiple parties, one property

[Andrew Aladjadjian]

Hypothesis:

Party 1 owns an investment property and would like to sell and purchase a like-kind property. Party 2 also owns an investment property and would like to purchase a like-kind property. Both parties would like to purchase the same property. Does a 1031 exchange allow for multiple, separate parties to purchase the same property together without realizing gains? The property to be purchase is a multiple-dwelling unit costing more than both owned properties. Asking for a friend.

[Ryan Thomas]

@Andrew Aladjadjian yes, absolutely. It would not matter where the other TIC owners funds came from. The taxpayer doing the exchange would just need to follow the reinvestment rules for the purchase of their particular TIC interest.