1031b exchange with a related party Form 8824

[Spock]

First: Yes, I will consult an attorney vs. SGOTI... but that can't start until next week.
Second: The "SGOTI"s on this board are smarter than the average bear (mostly...)


Scenario:
I am moving out of state and will be selling my house (owned for 12 years).
My Dad (his trust) owns two rental properties in town. One of which is starting to get long in the tooth with repairs/upgrades needed.
The idea is:

1. The trust sells the older rental to some unknown somebody, not a relative.
2. The proceeds to into a 1031 qualified intermediary.
3. The trust buys my/related party newer, somewhat more expensive house within the 1031b timelines- id'd in 45 days, closed within 180 days.

Now there are some red flags for the IRS since I am a related party. But the only google-law-degree info I can find doesn't seem to apply as the examples are all "closed loop" in that the relatives trade/swap properties or some such.

Question 1: Does anybody have any experience similar what I describe above where the outgoing property is sold to somebody else and the incoming property is sold by a relative... is this generally OK with the IRS or does it still violate their related party rules?

Question 2: This is copy/pasted from IRS form 8824, line 9... it's short... but doesn't seem to be written in English. Can anybody translate this??

During this tax year (and before the date that is 2 years after the last transfer of property that was part of the exchange), did the related party [me] sell or dispose of any part of the like-kind property received from you [Dad] (or an intermediary) in the exchange?

Since the 8824 would be filled out by Dad, and I (the seller of the 2nd property) owned it for 12 years, and I'm not receiving a property from Dad I'm selling to Dad ... this would be a "no"??

Form 8824 line 10 isn't much better:

During this tax year (and before the date that is 2 years after the last transfer of property that was part of the exchange), did you [Dad] sell or dispose of any part of the like-kind property you [Dad] received?

This again sounds like a "no"?? but it makes no sense... It's almost like it's asking for 2 years into the future.



Any light you can shed on this so I understand what the lawyer tells me would be appreciated.