Trading houses. Taxes? (by Homer [TX]) Sep 20, 2017 5:29 PM
Trading houses. Taxes? (by Robin [WI]) Sep 20, 2017 7:02 PM
Trading houses. Taxes? (by James [MO]) Sep 20, 2017 7:44 PM
Trading houses. Taxes? (by Robert J [CA]) Sep 20, 2017 10:50 PM
Trading houses. Taxes? (by BRAD 20,000 [IN]) Sep 22, 2017 10:32 PM
Trading houses. Taxes? (by Homer [TX]) Posted on: Sep 20, 2017 5:29 PM Message:
I look on Zillow and realtor daily for new listings so I can keep up with what's going on in my town. Today to my surprise I saw the 2.75 acre lot with a 1980 beater house behind me, get listed for 750k. I live in a rich town with the median home price around 450-500k. The houses directly across from me are the McMansions, which sell at around 900k. I live in a 1970 ranch on an acre. So I am the trash in the area, lol. Several years ago when the one acre lot next door, with a beater house similar to mine went on the market, I snatched it up right away. I don't want a McMansion beside me or behind me. I am a County boy in the city, but with the heavily wooded place behind me and beside me, and of course my heavily wooded lot, I am happy. I want to try and buy the house behind me, but I would only value the place at 500-600k. Land here is selling at 200k an acre. Since I can't write a check for 500k, I had the thought go through my head, trade 3 of my houses for one of theirs, which would be around 500k. I know I could do a 1031, but that takes time to sell them, I want to move fast. Does anyone know if you can trade properties without a tax event? A little history on my nipeighbors that are selling, they appear broke, they inherited this house and land about 15 years ago, property taxes are. Costing them about 9 grand a year right now, I think they can't afford the taxes anymore. They both drive beaters, perfect neighbors also, we have never even spoken or even waived at each other, lol. Any thoughts on how I could get this place... Quickly? --75.141.xxx.xxx |
Trading houses. Taxes? (by Robin [WI]) Posted on: Sep 20, 2017 7:02 PM Message:
Tell them you want to buy the land but it will take time to sell your other properties. Offer to buy an option on the property for, say, 100K with an 18 month period. That allows them to split the income into two different years. Less taxes = more money in pocket.
I have to say, though--200K an acre?? Have you considered moving a couple miles out of town? --204.210.xxx.xxx |
Trading houses. Taxes? (by James [MO]) Posted on: Sep 20, 2017 7:44 PM Message:
The answer is yes you can exchange your 3 houses for his property. Obviously, you have to comply with the rules, so get with a tax lawyer on this. Personally, I would rather refi my houses, then use that for the cash. Later you can sell the houses if you want. But tie the house up first with a contingency. I’m guessing trading theirs for yours won’t be appealing, unless a lot of time has gone by. --24.243.xx.xx |
Trading houses. Taxes? (by Robert J [CA]) Posted on: Sep 20, 2017 10:50 PM Message:
There are specific rules you most follow to the letter. You will need to have all parties cooperate with your exchange. All buyers/sellers. You do NOT listen to words out of mouths. You must employ a service to help you, agents, brokers and the escrow and title companies. Everything must be documented. Forms go to the IRS.
I've done simultaneous exchanges, 1031 exchanges and reverse exchanges. I've made sure that everyone handling my money or property was "bonded" and had a 10-100 million dollar liability policy to protect me in the case of fraud. --47.156.xx.xx |
Trading houses. Taxes? (by BRAD 20,000 [IN]) Posted on: Sep 22, 2017 10:32 PM Message:
Homer,
The magic of a 1031X is the trade does not have to be direct seller to seller. That's where the intermediary HOLDS the funds and buys the new property for you.
The delay is only how long it takes to sell the 3. Maybe all 3 to one cash buyer tomorrow and you're golden.
BRAD --68.50.xx.xxx |
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