Father/Daughter Property

[Jake Kucheck]

Property bought for cash, held jointly in partnership between father and daughter. Daughter lives there, has a roommate that pays rent. Property then refinanced, with loan in only father's name. Mortgage interest deduction taken by daughter (somehow).

The plan upon sale is to have the father's interest be sold as part of a 1031 and have the daughter's interest be sold and protected from capital gains due to the 2 of the last 5 exclusion.

Does this make any sense at all and have any chance of working? Maybe there are other relevant details I'm missing, would love to know what those are.