Properties listed for a 1031 exchange
I'm feeling very nervous about trying to complete a 1031 exchange for a property in San Diego county which has not yet closed. I was planning to buy some much less expensive duplexes in my home town in Wisconsin and perhaps another in Burlington, Vt where my daugher lives; but having had one potential purchase fall through at the end, I'm worried that I won't meet the requirements to put all the proceeds into other property. The tax bill matters to me in terms of future rental income.
Could I list the properties that my children own as homes and purchase from them, if it came down to not having enough listed properties actually close? Using the 200% rule I could list potential properties and then duplicate with properties that I know I could buy (temporarily)--is that a viable option? Or, should I look into Delaware Statutory Trusts and if so, how would I do that?
Right now the buyer of my San Diego property has had an inspection and offered an addendum reducing the price based on that inspection--does that mean I can cancel the deal?
I think this might be too stressful for me...I don't feel I know enough to properly proceed with any of it, but I might already be stuck in the process.
Most Popular Reply
@Cassandra Brown - you can cancel the deal, I believe, at least in the state of MO. If they want to renegotiate, you say no and that you are selling as-is and not making any repairs - that is if you truly don't want to sell it.
@Dave Foster May be able to help on the properties you can identify for your exchange but I think family members are excluded as replacement properties?