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Updated over 9 years ago,
Families 1031 Exchange question
Please help me answer what should be a simple yes or no question that is currently part of a family dispute. I know little to nothing about 1031 exchanges. Thank you all for reading this post and for any comment you may have.
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Three family members (Mother, Daughter, Son-in-law) formed a General Partnership with equal ownership.
The Partnership acquired a mortgage and purchased a home.
Two of the Partners (Daughter & Son-in-law) immediately moved into the home as their primary residence, and began to pay rent to the Partnership.
Years later the home had appreciated in value and the home was sold.
The Partnership purchased a new home and two of the partners (Daughter & Son-in-law) immediately moved into the home as their primary residence and began to pay rent to the Partnership.
Does the sale of the first home and the purchase of the second home qualify for 1031 treatment?