Real Estate Exchanges beat Capitol Gains?

[Community Organizer]

we were looking at a property in town to move to if and when we sell our
homestead or I die and the wife wants to be closer to services.
But we don't want to sell the country place and finding a Reverse
Mortgage is proving difficult. The place doesn't qualify under HUD rules.
So, I thought an Exchange of properties. the R.M. for possession of the
place in town.
Is there a book on how to do that? Do you need a broker that specializes?
--
If guns are out-lawed. Only the Out-laws & politicians will have guns.

[Gordon]

Community Organizer <george...@humboldt1.com> wrote in
news:georgewkspam-0C0B...@sn-ip.vsrv-sjc.supernews.net:

> we were looking at a property in town to move to if and when we sell our
> homestead or I die and the wife wants to be closer to services.
> But we don't want to sell the country place and finding a Reverse
> Mortgage is proving difficult. The place doesn't qualify under HUD rules.
> So, I thought an Exchange of properties. the R.M. for possession of the
> place in town.
> Is there a book on how to do that? Do you need a broker that specializes?

It's called a Starker 1031 Exchange. IT's only for investment property,
not personal property. You don't need a broker, but you do need
a company to facilitate the exchange. There are many conditions that
have to be met. If you haven't ever done this, you should get
expert help or you can get yourself in trouble with the IRS.

But Note: You and your wife can may be able to take a combined
$500,000 Capitol gains deduction when you sell your property.

Do you need a broker? No. But, There are things you can do
like using part of your property now for income. Then you
can claim it as income property for the the 1031 exchange.
then you can take the $500,000 Capitol gains exclusion on
the personal portion of the property. If you are at all
hazy on the specifics of all this (IE: What I'm telling you
is news to you), you should definitly find a broker that
specilizes in 1031 exchanges and formulate a plan. Do it
now, not when you are ready to sell, since many of the things
you have to do need to be in place for 5 years or more.