Exchanges - Posted by Lette


#1

Posted by A Miller on January 07, 1999 at 19:06:58:

Forget it. I used to go to exchange meetings years
ago and would sift through hundreds of properties.
If you can sell-you sell. If you cant-you exchange. Its my alligator for your alligator.
That`s no way to make a deal.


#2

Exchanges - Posted by Lette

Posted by Lette on January 07, 1999 at 17:39:13:

I spoke with a woman today who lives in Brooklyn, NY but has a home in Barbados she would like to sell. She mentioned that she wants U.S. currency for the house and is willing to do an exchange for a house here in the states. She’d then sell the new house for 150K U.S. currency.

My question: how would I market something like this? Has anyone ever done an international exchange? I’d appreciate an example please.

Thanks alot.


#3

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.


#4

Like Kind Property Requirements - Posted by William L. Exeter

Posted by William L. Exeter on January 08, 1999 at 08:48:18:

IRC Section 1031 require that you exchange like kind property for like kind property. The code was changed a while back so that the definition of like kind property now means that you must exchange United States property for United State property and International property for International property. You can not exchange U.S. property for International property.

Bill Exeter.
Security Trust Company.