1031 Exchange + Owner Financing ??
Hello,
I am in a bind. I wanted to do a 1031 exchange with a property i have, but i already said i would do 1 yr of owner financing.
The current deal I have going is that the lady will pay me $7000 now and the balance of $30000 in one year.
Can I owner finance for one year, and then do the exchange at the end of that year with the full amount?
Are there any other ways to minimise my tax consequences?
thanks for your help!
jared
Talk to your exchange company. There may be a way to sell your note (at a discount) under the exchange umbrella.
The exchange window starts when you sell the relinquished property, not when your seller financed mortgage note is paid off.
I suspect that you have locked yourself into a taxable sale here, and closed the door on an exchange.
thanks for the info. i have not signed the deal yet. i have just given lip service to the one year owner finance. i really don't want to pay the taxes though. i'm trying to figure out a way to make it a win for everyone.
jared