The 1031 Exchange Institute

Welcome to The 1031 Exchange Institute™. The 1031 Exchange Institute is your complete online resource for 1031 exchange, 1033 exchange, 1034 exchange, 721 exchange, 453 installment sale and 121 exclusion information.  Information will also be provided regarding Self-Directed IRAs, including Traditional IRAs, ROTH IRAs, SEP-IRAs and SIMPLE IRAs. 

The 1031 Exchange Institute is dedicated to educating and informing real estate investors and their advisors on the benefits of 1031 tax-deferred exchanges and other tax deferred and tax exlcusion strategies so they can make better informed investment decisions.

1031 Exchange Discussion Forum > Exchange with siblings in inherited property

Hello there,
I am a small time investor that is about to close on my first "flip" project. I am hoping to do an exchange with a house I own with my two brothers that we inherited from our deceased parents. The house is in need of major repairs and I was hoping to exchange my property for the inherited one(buy my brothers out) and renovate it for resale. I have read the rules regarding related party exchanges and it appears that the rules attempt to prevent the related parties from tax avoidance in the exchange. There will be no taxes due upon sale of the inherited property as it is well below the inheritance tax threshold, so the exchange will really only benefit my side of the transaction. The two properties involved are nearly identical in value. Any thoughts on whether this is possible would be greatly appreciated! Thank you, Tony
October 3, 2013 | Unregistered CommenterTony S.