All Forum Posts by: Christine B.

HI,

I am a small time investor with one rental property.  In an attempt to do a good deed, we allowed our son's girlfriend's father to live in our rental home for 6 months rent free, with rent starting in month 7th (rent is only $300/mo).  We are now at month 23 with only one month of paid rent. We have tried everything to settle this in a friendly manner, however in the fall the tenant communicated verbal threats numerous times. I have been waiting for the moratorium to lift to proceed with eviction.   I need recommendations for a NC Attorney that specialize in eviction (Charlotte or Monroe area).  I'm a little leary to do anything personally at this point due to the threats and I would like to make sure everything is done correctly. 

Also, any advice on what I can expect to pay?

Thank you for your help!

My husband and I bought 30 acres in 1994 (undeveloped) for $119K and in 1999 we built a home on the property for $200K.  We have been approached to sell the property to a developer with 3 proposed scenarios:

1) sell 25 acres, we retain 5 acres and house - $1.2M

2) sell entire property - house will be demolished - $1.43M

3) Sell 25 acres to developer $1.2M,  sell house and 5 acres separately $400K

Option 3 provides for the greatest cash proceeds, however I'm trying to determine what the tax implications are of each scenario.  In which scenarios can we maximize the  IRS Section 1031 and Section 121.  

Scenario 1 - can only use 1031 like exchange - with limited cash retained (cost bases of the 25 acres) without paying capital gains

Scenario 2 & 3 - Can we utilize IRS Section 1031 and Section 121 for both scenarios.  And in scenario 3, do both sales have to take place at the same time? 

Any feedback is much appreciated. 

TIA.