Quitclaim After Converting From 1031 Exchange

[Mimi Phan]

Hello everyone,

I have a question that I hope to get some help with from the BP community. My fiancé has a condo under his name, which he currently occupies as his primary residence. He also has another condo in a senior community under his name, where his mom currently occupies, so it's not an income property.  The senior community condo is owned free and clear, and he said he took title to help manage the paperwork and pay taxes on behalf of his mom, but the equity in the condo belongs to his mom. Now his mom is looking use the equity in the condo to buy a home in a different area. Since the senior community condo is under my fiancé's name and it's not considered a primary residence for him, he most likely will incur income taxes if he sells it. He'd also rather have his mom take title on the next home. My question is - can we do a 1031 exchange to use the equity in the condo for the purchase of the new home so that he and his mom can avoid the income taxes, and then he quitclaims the title of the new home to his mom?

If anyone knows a good real estate CPA in the Orange County (Irvine) area, please let me know.

Thank you in advance for your inputs!

[Wayne Brooks]

Why not just QCD the condo back to the mom now, let her sell it?  Since it’s not an investment property a 1031 is not available anyway.