Scenario

I bought condo A and have a mortgage of $60K. My wife is selling a condo B for $60K and doing a 1031. A friend is willing to buy my condo A for $60K and simultaneously sell it to my wife for $60K plus $1.00. I will pay all closing cost on my sale of condo A to the friend and my wife will pay all closing cost on buying condo A from the friend. Is this a legal transaction?

Comments(5)

  • lavonc14th February, 2007

    You also state "it is the most costly property". Is it the most desireable? If not, pass on it. It is always best to buy low in a neighborhood than the best house on the block.

  • Packerfan15th February, 2007

    Thanks for the response. The leasback is 8%. With 10% down and covering all other costs I will receive $500 per month positive. The prop is the most favored but my question is the regarding the tax advantage. Depreciation? I will be able to sell for the purchase price at a minimum. May be a slight loss?

  • lavonc14th February, 2007

    I use a CPA here in California that I highly recommend. He knows RE like the back of his hand -- he owns 200+ homes in TX. I know he does taxes for other REI out of state. Let me know if you want his info.

    But he will only solve some of your issues. I recommend you get organized and keep great records in a s/w program. When Tax season hits, it should be fairly painless.

  • kimander18th February, 2007

    Yes, please send me his info! thanks!!

    I use MS Money, by the way, to track my RE biz transactions. I was just hoping there was something better out there.

  • ojedra18th February, 2007

    I actually do my own after being screwed by a Tax Attorney.

    You may want to try INTUIT products (makers ofTurboTax, Quicken etc) They also have Rental Property Manager, as well as Real Estate Solutions software including Commercial.

Add Comment

Login To Comment