1031 exchange and subsequent gift

Hello, I was wondering if I were to make a 1031 exchange if I would still be able  to gift a property, or if I would have to gift the property as a 1031  exchange.  Would I basically be able to do a 1031 exchange and gift the  new property to someone to use as their primary residence?  Thank you very  much.

Dear L:  Under section 1031 both the old and new properties must be held for investment.  If you 1031x and then immediately gift the property away that indicates that the new property was never held for investment.   I would be preferable if the donee moved into the property and paid rent to you for a period of 1-2 years.  After that time a gift of the property would probably be acceptable.  Sincerely

Steve Hickox
Attorney / President