1031 Exchange through a family owned property

[Camden Smith]

My dad has 4 duplexes. I want to buy 2 or maybe all of them. He wants to role the sale proceeds into a 1031 exchange. Is this legal to have a family member buy your properties.
Also... my Dad would also be "the bank" for the purchase of 2 duplexes-- let's say. So he would fund the total amount minus my down payment.
What are the legal ways to do this so that I can buy 2 properties from him, he can sell them, and still use those sale proceeds (along with the sale of the other two duplexes) into a 1031 exchange into a commercial retail property?

[Dave Foster]

@Camden Smith related party rules for transactions can be very tricky.  And they move around a lot per the newest case law.  Bottom line is the IRS is always skittish of them.  So you'll want to get an okey dokey from your accountant but your father is probably OK selling two of the duplexes to you and doing a 1031 exchange as long as you hold the properties for a minimum of two years.  And I'd also like to make sure that he does a complete and full exchange.  The the other joker in that deck would be that if those duplexes are substantially identical and there is a sale to you at an obvious discount rate the IRS will be looking for a reason to find cost basis shifting.