1031 Question Regarding Taxes

[Tom Beck]

Can someone answer this Hypothetical question for me regarding 1031 and Taxes.

Scenario

Lets say my Father bought a property for 1,000,000 and Sold it for 2,000,000

1031 Exchanged the sale

Bought two properties for 1,000,000 dollars each.

Held the properties for one year.

Sold me one property for 1 Dollar.

Sold the other property for 1,000,000.

Questions

Is this legal?

What would he owe in taxes?

What would I owe in taxes?

What laws could stop this from occurring?