1031 Exchange question!

[Nikki Closser]

Hi! I'm getting ready to do a 1031 exchange. IRS says the same party must sell the old property and purchase the new one. But, it doesn't say if we can add someone to the new property. For example, we have someone who wants to purchase a property with us--can they contribute to the new building or does it have to be purchased exclusively by our LLC that is selling the old building? Thank you!

[Bill B.]

You can buy together as “tenants in common” as long as your portion of the purchase is greater than your net sale.