Exchange is in California but the exchange proeprty is located in Oregon.
My father recently got divorced and we have sold his investment property that we want to exchange into a fourplex in Oregon. Due to his credit being horrible we could not add him to the loan. I (his son) am purchasing the fourplex and using our perosnal equity line for the down payment. We want to recover the downpayment via the exchange by adding him onto the title of the property either as full owner or % owner required to satisfy the exchange.
Is this possible? There is no difference between my purchase price of the property and the sales price to my father. Since exchange money would be received by me to repay me for the downpayment, is this allowed by the IRS? Read the rules and can't make sense of them. My purchase of the property and the sale to my father would occur in the same week with the same escrow company handling both transactions. Pls help.
My father recently got divorced and we have sold his investment property that we want to exchange into a fourplex in Oregon. Due to his credit being horrible we could not add him to the loan. I (his son) am purchasing the fourplex and using our perosnal equity line for the down payment. We want to recover the downpayment via the exchange by adding him onto the title of the property either as full owner or % owner required to satisfy the exchange.
Is this possible? There is no difference between my purchase price of the property and the sales price to my father. Since exchange money would be received by me to repay me for the downpayment, is this allowed by the IRS? Read the rules and can't make sense of them. My purchase of the property and the sale to my father would occur in the same week with the same escrow company handling both transactions. Pls help.