Trading houses

[Jon Klaus]

I have a free and clear home (owned 5+years) I've agreed to trade straight up for another free and clear home. The other party is an owner occupant and would be owner occupant in my house after closing. The values are roughly the same.

I would like to sell the house I acquire. In fact, I wouldn't mind assigning the contract so I don't even have to close on it. If that doesn't work, my next option is to do a cosmetic rehab (very dated plus deferred maintenance), and then put it on MLS. Option three is to update it and then rent it out.

What are my tax scenarios?  Is this a 1031 Exchange candidate?  If so, how do I establish values since there is no sales price?  If not 1031 X, would my new house be treated as long or short term capital gains if I sold immediately?  Or wholesaled it?  

Another question; how do I write the contract for this transaction?  And make it assignable?