Question:
“I co-own a rental property with my brother. Can I sell another rental I own and use the money to do a 1031 exchange to buy him out?”
Answer:
My 1031 rep said you cannot do an exchange on a property where you already own a partial interest:
“Unfortunately, because of the vesting and the direct relation he won’t be able to do this exchange. The IRS considers this cost basis swapping because of the direct relationship with his brother.”
