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adding a partner on the 1031 exchange
HI BP community,
My parents have a rental that they'd like to sell and exchange for property in a better location. The goal is that in the future my brother will move into that new property. However, the problem is that the new property will most likely cost 2x the proceeds they'll be getting from the old property and since they are retired they most likely will not qualify for a mortgage to make up the difference.
I'm wondering if there's a way to structure the 1031 such that my brother is added to the transaction along with my parents so he can take out a mortgage to make up for the difference. Any ideas? I'd hate for my parents to sell it and pay a bunch of capital gain taxes. Thanks!