Delaying Tax On A Sale
I own a lot worth around $400,000. My mortgage is $175,000. I want to buy another property and would like to avoid selling this lot if possible because it is appreciating and the loan is 4.75% fixed. An in-law who has far too much cash sitting in CDs and money market accounts expressed an interest in becoming half owner of my lot and can pay me $200,000 in cash. The way I see it, if he pays me cash for 50% fractional ownership I will be getting the same amount of cash as if I sell it. Question. Is there a way to structure this deal so there will be no tax due and so I can keep the present mortgage?
[ Edited by landpimp2000 on Date 07/23/2007 ]
[ Edited by landpimp2000 on Date 07/23/2007 ]
talk to the 1031 exchance experts here on the board.
You are also getting a 50% that might not agree w/ you when you wanted to sell, refi, or whatever.
A blanket mtg is 1 mortgage that covers both properties. Usually a mortgage company will let you out of the lien on the one house _BUT it must be negotiated.