Need Advice On 1031 ASAP!!!
I am selling a rental property that I have owned for 14 years. I am doing a 1031 exchange. Escrow is closing in a couple days. Our parents were originally co-signers on the loan so their name is still on the deed. Our plan is to Quit claim them off at the close of escrow. The escrow company thinks this is fine, but the exchange company thinks it might red flag the IRS. One other thing...we refinanced this property a year ago and our parents we supposed to be taken off the deed,. but the paper work got mixed up and they were put back on. They are not on the loan and have never used this property as a tax write off. I hope this makes sense! Thanks Lisa :-?
Did your parents sign the Escrow Exchange Agreement with the exchange company?
If not, then I would not worry about any IRS red flags.