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Updated almost 6 years ago,
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In need of creative financing ideas for a 1031
My husband and I are planning to do our second 1031 this spring. We just found a potential seller. It's in a partnership. The first partner is 79 and wants to retire. The second partner is a long-distance LL who is strapped for cash. The property that they own together is a tri-plex. Problem is that the tri-plex isn't worth enough, so we will need to find a second property.
The 79 year old seller (not in a partnership) has another duplex that he also wants to sell, but he doesn't want to sell two properties in the same tax year. We like both properties, the two combined fall in the correct price range, and we have financing for both properties.
We need to do the exchange this Spring, because the condo we are exchanging is in a volatile market that I believe is at its peak.
Both potential properties are owned free-and-clear.
How can we do the exchange with both properties, but help the seller avoid paying taxes on two properties in the same tax year?