Need advice on purchasing or selling
So my father purchased a property I found for me because my job was paying me 1099 and so I didn’t qualify for a loan so I got my employer to switch to a w-2 so I can purchase the house in 6 months which is now less than a month away but I put money in the house and increased the value right around 30-40k more than the purchase cost so my question is it possible for me to have my dad sell the house and put the profits in a 1031 exchange and I use that to fund my next house? Or should I just buy the house from him and then sell it?
I'm mostly clear on whats going on... But, you can only 1031 an investment property. So, unless you were renting it from your father, it wouldn't be possible. Also, I'm not what are the rules for it needing to be an arm's length transaction -- you might need more paperwork to show its at fair market value.
You might be better off claiming as your primary residents and go for the sec121 exclusion of $250k single or $500k married. Also, sounds like it might be difficult since Title is in your father's name. Perhaps a quit claim deed. You'd have to talk to a professional on this one.
Good luck.