1031 exchange dilemma - Posted by David (TN)

import · June 23, 1999, 3:16pm

Posted by Irwin on June 25, 1999 at 06:56:50:

If the gross selling price isn’t shown on the HUD-1, the only result I see is that your seller will have 20% less capital gain to shelter with the 1031 exchange. I could be wrong, but offhand, I don’t see what his problem is.

import · June 23, 1999, 3:16pm

Posted by David (TN) on June 23, 1999 at 15:16:15:

Here is the problem I have encountered:

I have a seller who is willing to give me back a repair allowance (around 20% of the sales price ) for carpet, repairs etc. But now that he has decided to do a 1031 exchange, he has to have the allowance show up on the HUD. My lender however, will not allow the allowance and says we need to do it outside of closing, this would not work for his 1031 exchange because the HUD would show more than he is actually collecting.

Any ideas or suggestions around this?