Rental property transferred to child with a mortgage

[Megan Anderson]

My parents bought a house for me because I did a short sale 7 years ago and wasn't  able to get a loan back then. They have a 1031 exchange on this property . They bought it for 360k and its worth 499K now and 200k is left on the mortgage. My parents want us to have this house in our name so I am looking for the best way to take over the loan with the least amount of taxes implication. Can someone point us in the right direction? Thanks

[Blair Poelman]

You need to talk to a qualified intermediary before you do anything.  A change in ownership may trigger a taxable event because of the 1031.  Look up whoever helped them on the original purchase - they should be able get you going.