Greetings;
My wife and are I undergoing a 1031 exchange for a property titled in her name.
We're both Hawaii residents and file jointly (a common law state). The relinquished property is in Oregon and the replacement properties (2) are in Washington (a community property state).
The lender is requiring us both to be on the Purchase & Sale Agreement, as my wife doesn't qualify for the financing of the replacement properties herself. Initially, I intended to simply cosign for the loans to keep the properties titled in her name (for now, of course).
With both of us on the P&S Agreement, this apparently means that both our names must be listed on the new titles.
I'm wondering whether this will violate 1031 exchange laws and I'm having trouble finding a definitive answer. My research is coming up with a lot of mixed messages and the 1031 intermediary, title company, and my CPA can't seem to give me a convincing answer (frustrating).
We're looking at a huge tax bill if we screw this up. My CPA says "he's doesn't see any issues with us both being on the new title(s)".
We've already amended the P&S Agreement to add my name and appease the lender. I suppose we could amend again, if necessary, but it would be great to have some better direction before making any further changes.
Should I find another lender and be a cosigner? I don't understand why I wouldn't be able to cosign as-is...
Your thoughts / suggestions are greatly appreciated!! Thanks a bunch in advance.
-Adam
