Received a phone call from a client yesterday. Client and her sister inherited 50-50 interest in two parcels of farm land when their father passed away a few years back. Sister wants to sell hers but client wants to keep. Attorney that they are dealing with suggested that each sister do a Quit-Claim deed on their interest in one of the parcels, so that at the end of the the day, each sister has 100% ownership in one parcel (parcels are approximately the same size). Sister will then sell her parcel while my client continues to hold on and rent hers.
Of course when the client explained how the attorney wanted to do this, she made it sound so simple. However, I started thinking as to whether filing the Quit-Claim deeds to effectively transfer ownership of the parcels was equivalent to a 1031 exchange. Am I overthinking this?