1031 exchange on parent's house with title under children's name

[Carmen Chow]

Hello BP members!

Here's the situation,

My parents currently reside in a single family house (Title was under my parents name originally and was changed over to me + my 2 siblings 9+ years ago). My siblings and I don't live in that house anymore.  Can I do a 1031 exchange on that property? 

Any advice would be appreciated, thank you!

[Dave Foster]

@Carmen Chow, If you've treated that like an investment property then you could 1031.  Did you receive title to hold that property for investment?  If so you might  have set up a lease with your parents and reported the income and depreciated the property and reported it as an investment property on your tax return.  

But if you simply took title and your parents just kept living there then the IRS would classify that as property for personal use not investment and the 1031 wouldn't apply.