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Updated 10 months ago,
1031 Exchange Question
I am in the process of selling my ranch home property, and I've found a promising buyer. They're interested in paying 50% of the purchase price in cash and financing the remaining 50% through owner financing over three years.
However, I'm considering utilizing a 1031 exchange to reinvest the entire sale proceeds into another property after closing. My concern is that if I proceed with the owner financing arrangement for 50% of the sale price and pay off the loan later, I might face significant tax liabilities. Does anyone have suggestions on how to best leverage a 1031 exchange in this situation to maximize the benefits of the full sale price? Thank you in advance for your time and timely help. TOD