Stalker Exchange
Have I waited to late to do this to save on capitol gains.
In 2 weeks closing on selling a rental house for 128K for about 20K profit, had a few years.
Just bought and closed on a new one last week for 110K . Will put another 15K for rehab.
This week closing on another purchase for 90K will need 7K in rehab.
Do I have Any way to take advantage of the exchange rules?
Thanks
It may not be too late, but time is running out on the property you are selling in about two weeks.
You have two weeks to execute an exchange agreement, gain the buyer's cooperation in the exchange, and engage the services of an intermediary. Once settlement has occurred and you have the money in your hands, it is too late.
If you work quickly, maybe you can establish the structure of an exchange and still use your rental property as the relinquished property under the exchange unbrella (If you need more time, can you delay the settlement?). After settlement on your relinquished property, you have 45 days to properly identify your replacement property and another 135 days to complete the acquisition.
By the way, for those who are doing google searches on the topic, it is a "Starker" exchange.[ Edited by DaveT on Date 01/19/2004 ]