1031 exchange or not?

Dear 1031x.com: My 71 yr. old father has relocated to another state and  wants to gift me his house,  He has also signed over power of atty. for the sale  of this house if I intend to do so. I am thinking of selling the home I currently live in and moving into his  home for 2 yrs. to avoid capital gains, although I would rather go into an entirely different house. I think I understand the  concept behind a 1031x but, want to know is there any way we can do this  and not have the replacement property have his name on it? he does not  want to have the responsibility of taxes in his name etc, If we do a quit claim on the property (the house is still fully in his  name) is there any way to 1031x it in my name? or am I just better off  living out 2 yrs to fulfill the irs wish list?? Thankyou

Dear Sir:  As I understand it your father still owns his home and he did not change his principal residence that long ago.  As long as he sells that property within three years after he creates a new principal residence he can sell the house and qualify for tax exemption under IRC section 121.  The best strategy is for him to sell his house, and exempt as much as possible under IRC section 121.  Then he gift you the cash.  You sell your own home and it too qualifies for exemption under IRC section 121.  Of course since no 1031 exchange is occurring you do not need our service.  Please let me know if this works and keep us in mind for other business that you can refer to us.  Sincerely, 

Steve Hickox
Attorney / President

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