However it is gaining popularity heavily overseas, especially in South Africa.

. $30K, new property is $55K...If the selling price of the relinquished property is more than the price of the acquired property, the difference (neglecting transaction expenses) is your taxable gain ("boot" is the term used).

The most efficient way to handle this IMO is to pay have your friend hold a note or if he wants and equity position treat it as if he is holding a mortgage at an agreed rate of interest and you may even want to include him in on a percent of the gain if the property is sold.

If it falls thru, then there's nothing gained, and very little lost.Lynn (FL)

I think at best we may see small gains in some markets, but many will remain flat or continue to decline.

I am concerned because in case I want to sell the house at some point, I'd like to reduce my capital gains taxes as much as possible.

If you live in it for 2 years, there's no tax on your gain.

If I can get a quick sale I'll avoid the capitals gain tax, but that may not happen.

Once I purchase at tax sale, I drive to the house, gain access and change the locks.

Hello...I am new here and learning so much valuable information.