Help! I'm on Day 45 of my 1031 Identification period and just thought to ask this...

[Jim Hwang]

Hello BP community,

I am about 11 hours away from letting my 1031 exchange fail after much back and forth.  To defer all taxes, I would need to reinvest at least 250K.  Currently, my QI is holding about 110 in capital, meaning I would need to replace 140K in debt.  Taking on new debt at current interest rates is a large reason I was ready to let it fail, until literally an hour ago when I thought, "Can I use seller financing to replace that debt, presumably at a much lower interest rate?"

A follow-up to that is whether or not I could list my mother's SFH as a replacement property and then have her be my "bank". The sticky part here is twofold: she was the co-owner of the relinquished property, and her SFH is what I have listed on prior tax returns as my primary residence since at the time I was living abroad. Since August 2022, I have lived in Idaho and so her SFH would technically be an investment, or so I would hope.