1031 exchange upleg Loan Requirements

[Susan O.]

Hi we are still planning a upleg and 1031 exchange.  Partners owned the downleg 50 -50 

Only one owner wants to be on the loan and the lender says thats ok because we're putting  a lot down on the upleg

I was wondering 1031 exchange the upleg do you have to keep all partners on any new loan.  both have to be on loan but only one Guarantor

Can the new loan only have one of the two partners on it?

Or do all parties have to be on new loan   for 1031 exchange rules?

Does bouth partners have to be on the new loan?  Or could one just be on the new loan even though both would be paying.

[Dave Foster]

@Susan O. the loan is irrelevant for purposes of 1031.  The same owners who sell need to be the owners who buy.  But that means the deed not the loan.  You can have anyone you want secure or co-sign on the loan as long as the taxpayer for the old property remains the same as the taxpayer for the new property.