1031 exchange limitations

[Michael Daniele]

I own a single family rental property that I am going to sell. An opportunity presented itself where my mother and I have been offered a beach home to purchase. The house is a single family home and worth more than the house I am selling.

I cannot afford the beach house on my own. If I buy the beach house with my mother, am I subject to capital gains? I understand the time frame and all of that when it comes to the 1031 exchange, but wasn't sure if it applies if I am purchasing the new home with a partner.

Hoping someone could provide some insight! Thanks!

[Brian Napierala]

Your 1031 exchange funds, like you already know, have to be applied to another investment fund to avoid capital gains.  As long as you follow that guideline you should be ok.  Bringing in a partner or additional capital to purchase your new investment property won't affect your purchase.  Your CPA would be the optimal source of information.