1031 Exchange - Same Taxpayer Rule

[Matt Kvalheim]

Hello, I have owned an investment property with my wife for about 6 years. We have done two 1031 exchanges already to get into this property, so our cost basis is very low from a capital gains perspective. We would like to sell the property and exchange into a  larger property via another 1031 exchange. However, we would need to bring on another investor in order to afford the larger property. Can we bring on a 3rd investor (a friend in this case) and still qualify for the 1031 exchange? 

[Dave Foster]

@Matt Kvalheim

Yes you can bring in a third investor if it is done as tenants in common. You and your wife would have to take title to at least as much as you sold, and your friend is able to take title to any amount that is left.