I know the capital gains tax on investments shorter than 1 year have at least 35%+ tax.I try to tell people to beat the tax with volume, the 1031 exchange program can be a pain with their guidelines and process. 

@Brett Stec this is a tough one since the primary residence exemption won't apply to her and she won't be able to do a 1031 exchange since it isn't an investment property. 

Upon the sale of the condominium, the capital gains on Person C's sale would be calculated as follows:A. 33.33% of the sale price minus the original purchase price to account for the interest acquired via quit claim deed on July 7 2015.B. 16.66% of the sale price minus the stepped up fair market value on 11/17/2020 as capital gains for the 16.66% remainder interest acquired on 11/17/2020 from Person A.C. 50% of the sale price minus the stepped up fair market value on 01/17/2023 as capital gains for the 50% remainder interest acquired on 01/17/2023 from Person B.Total Capital gains would be the sum of items 3A, 3B and 3C above minus any allowed deductions, such as the home sale costs (closing, repairs and so on).As an individual owned rental property, upon sale the only way to avoid the capital gains would be to do a 1031 exchange and then hold the new property that is purchased for approximately 3 years before selling it. 

  - There are a lot of good folks on BP who have been in the game a long time and can vouch for different QIsAs for your DIY model: you can't do 99% of exchanges on your own, the IRS won't let you. 

Forst off, you DO need a broker if you are going to lend, otherwise, you are likely in violation of state usury laws and other potential Federal laws.Bill mentioned being carfeul to stay within these laws and that is precisely the job of your broker, so YES, you need one as a lender or get your own broker's license.Secondly, if you come in not as a lender but an equity partner, then all these topics are null and void as you are not coming in as a lender but as a partner.

A 1031 exchange is also possible, but albiet a little more costly to perform.

If the tax is signifcant, you should consider doing a 1031 exchange.

All without a 1031 exchange, because I wanted to hang onto some of the proceeds from the sale to purchase furniture for my new short term rental. 

Code § 10131A real estate broker within the meaning of this part is a person who, for a compensation or in expectation of a compensation, regardless of the form or time of payment, does or negotiates to do one or more of the following acts for another or others:… (b) Leases or rents or offers to lease or rent, or places for rent, or solicits listings of places for rent, or solicits for prospective tenants, or negotiates the sale, purchase, or exchanges of leases on real property, or on a business opportunity, or collects rents from real property, or improvements thereon, or from business opportunities.

IE: you send them leads in exchange for access to their flippers.