1031 Exchange, Like Kind Property

[Donald D Michna]

I was at a meetup the other night and a CPA came to speak with us. I spoke to him on an individual level after the meeting about a 1031 exchange that a family member is looking to move from one property to a like kind property. I was planning on partnering with the individual once we purchase the like kind property together. After the meeting he followed up with me and indicated the following “The same person that owns the property given up must receive the replacement property. With both the property given up and the property received, the intent of the property must be to hold by that person and use as an investment, a rental, or in a business. Moving it to another entity, even if for those same reasons, shows your intent was not to hold. The advice is to hold for 12-24 months (2 tax returns), and then intentions change, and it can be contributed to a partnership.” Does this sound accurate? I intend to be apart of the like kind deal but also do not want to make the 1031 exchange null and void. Thanks in advanced.