1. The thing is, the client and her son own an FL real property together, she also owns an NJ real property under her own name. Can they use these FL and NJ properties to do 1031 exchange for a new property, and name the new property under her and her son’s name? They wonder if this situation qualifies Section 1031 exchange. Does the NJ property have to be under both her and her son’s name to qualify the exchange?
2. If the situation above doesn’t qualify, she also wonders if she can use the NJ house itself to exchange for a smaller and cheaper house. If that is the case, can she defer the whole gain? Is there an upper limit to defer a 1031 gain?
Thank you so much!