The IRS has issued Revenue Ruling 2002-83 which describes its position on related party exchanges. Click here for document
. A taxpayer can SELL a property to a related party and acquire like-kind replacement property from a non-related party without violating 1031 rules, however both parties must hold the respective properties for a minimum of 2 years to qualify. The IRS has offered several private letter rulings which may dispose of the 2 year holding period for the related buyer. Click to view a selected private letter ruling: PLR200709036
. A taxpayer cannot SELL to a related party and BUY property from a related party unless both parties are completing their own 1031 Exchange or can prove that the transaction was not completed to avoid taxes. A taxpayer cannot sell to an unrelated party and buy from a related party.