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Updated 7 months ago on . Most recent reply

User Stats

201
Posts
37
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Ellie Narie
  • Investor
  • Ashland, OR
37
Votes |
201
Posts

How do you do a 1031 exchange for a house-hack with 2 owners that own as JTWROS?

Ellie Narie
  • Investor
  • Ashland, OR
Posted

I am selling a 4 unit property that is owned by my partner and I as joint tenants with rights of survivorship. As in, we both own 100% of the property. We both occupied one unit for 2 out of the last 5 years. The other three were rented. We are not married. My partner claimed all the rental income and expenses. He also claimed the 25% of the property as primary residence, and he's the only one on the mortgage. 

What are the logistics for carrying out a 1031 exchange? Do we just have escrow write us a check for the 25% of the proceeds after the sale, since that was our primary home portion? And the other 75% gets put in with a QI for a 1031? 

I have a replacement property picked out already and an accepted offer on it. I heard that I can do a same-day exchange and not even use a QI if it occurs on the same day. Is this true? 

Now, for the replacement property... I am pre-approved for the loan, and the lender only lends to LLCs. However, my partner is on the original property's loan that we are selling. The main problem is the LLC part. We currently own the original property in our personal names since it was a house-hack. If the lender for the replacement property wants to lend only to an LLC, how do we make this work with a 1031 and the "same taxpayer" rule?

Thanks. 

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