Me and my business partner are each 50% owners of an LLC.\nWe are involved in a 1031 exchange. One of our\nidentification properties is owned by my business partners'\nmother. It is a residential investment property which she\nhas lived in for 2 of the last 5 years, thus making gains on\nthe property (250K/person) non taxable per my understanding.\nIf we purchase her property and she does not exchange but\ninstead "cashes out" have we violated 1031 related party\nrules? If we are violating 1031 rules, can we satisfy them\nby decreasing my business partners share in the LLC to below\n50%? We intend to hold the property for at least 2 years.\n\nThanks in advance for your answer.