I am day 7 into a 1031 exchange deadline. I own a different property (unimproved land unrelated to the exchange) with my father (50% ownership). Can I parlay my QI funds into an investment property I already own 50% of and "buyout" my father's 50% without complications? Title is in both of our names.
@Dave Foster will probably clarify but I bet you run in to problems with your father. Even if you could buy out a stranger I believe 1031 rules closely follow IRA rules regarding disqualified people.
I don’t believe you can buy from parents, kids, siblings and probably a few other relatives. Though strangely I also believe you can sell to them.
The issue is that you would be buying from a related party. And while there is not a strict statutorial prohibition against purchasing from a related party the IRS really scrutinizes them when they see them. Because there is so much opportunity to artificially reduce gain for for one party or the other.
However there are many accountants who feel comfortable with these as long as an arms length business like transaction is maintained and meticulously followed. You want to really lean on your accountant if you want to go this route.
Your purchase needs to be arm's length away, at least. As Dave said, might need to look at other options.