In need of some guidance.

[Reginald M.]

 I’m new to this forum. I’ve read through a lot of helpful information here on the forums and it’s safe to say my mindset has changed. I’m grateful for this community.

Here’s my situation. Someone I know is selling their 20 unit apartment complex. And from the gains they, out of the kindness of their soul, want to gift me $ 100k. I’m 28 with only $5k in savings.! Anyway, they say I could either take the 100k or they could partner with me and put that money towards a local or out-of-state property. If I just take the money they will most likely be taxed on the gains and my reading says they might be taxed on the gift as well if they don’t allow it to be deducted from their lifetime exclusion (2019 is at 11.4 million right now?). 

At any rate I would not want them to be taxed on the gains so last resort would be to accept it as a gift. But I’m unclear if the 1031 exchange will work ? People are saying it won’t if they’re downgrading from a complex to a single family home?

I would really appreciate some guidance for both of us ! Thank you in advance !!! 

[Reginald M.]

@Dave Foster

You’ve made it very clear for me now. Thank you