Re: Exchanges - Posted by Sue (NC)
Posted by Sue (NC) on January 08, 1999 at 08:52:26:
So, are you interested in picking up the house in Barbados (hard to manage from a distance, but might provide some interesting tax write-offs) or the one she is going to pick up and then resell in NY (in my opinion, the better option)?
If it’s Barbados you want, you should question her ability to do this… I know you can do tax deferred exchanges of property in the US Virgin Islands, but not sure on Barbados. Perhaps I need a geography lesson?
If she is trying to do a 1031 exchange, she might find that she cannot. Just because she trades one property for another does not necessarily mean that she will be able to avoid taxes, which I assume is her motivation in exchanging rather than selling.
If you want the NY house, that’s another story. You have a cash buyer for the house you want (thereby netting you a good discount in price). The lady can buy the house (at a steep discount) then sell it to you at a price that is still good.
Better still, you can be her bird dog for the house she buys in NY, making $ without ever taking title.