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Updated over 4 years ago,
1031 Question for when one person has poor credit?
I couldn't find an answer, so I came here =). I'm looking to 1031 a property, which I own jointly with my wife, but she has poor credit. My thinking was that I could use a Q. Claim and get her off title, and then do the 1031.
That seemed like a logical solution, but then a 1031 guy I spoke with said it may cause tax issues for her? I know this can be true with an LLC, which we are not, and I know there is a cooling period with an LLC, but I don't know if that would apply to a married couple?
I obviously want to drop her because I want to get a loan on the other side of the 1031 transaction.
Has anyone had any experience with this sort of thing? Is there a better solution?