All Forum Posts by: John McClain

I recently purchased a house with my girlfriend, I acted as our agent and earned the 3% commission if I gave her my entire commission as a rebate would:

A) it be legal? 

B) it be taxable to either of us? 

C) it have to be disclosed on the HUD 1?

If the original property was sold for $75,000 and including realtor and QI fees the closing costs were $6500 does the purchase price of the replacement property just need to exceed that total of $68,500?

No the QI didn't say much at all and it obviously never even occurred to me that a flip wouldn't be considered like kind. I guess I was thinking of both of them as business capital. Either way not a huge deal, I just unnecessarily paid for an exchange that I'm not going to use.

I recently sold a rental property with the intent of using the profits to begin buying flips. The proceeds from the rental sale went straight from title to the QI therefore I have already paid the exchange company their fee. I am just now finding out that I may not be able to exchange the funds into a property that I intend to flip. Will my profit be taxable if I use these funds to buy a flip rather than a long term rental?