Tax Question from Sunday’s Radio Show: To Sell or Exchange?
January 7th, 2008 . by Mike KellyWe had a listener who had purchased a retirement home in Ashland, Oregon but has second thoughts and has decided to stay here in Sonoma County. Unfortuneatly she refinanced her home down here and does not like having a rental in Ashland and her home with a big mortgage on it down here. She thought she could sell and pay off her loan with no tax consequences–NOPE! Ain’t gonna happen. I referred he to frequent show guest Christine Cromwell of Cromwell Bookkeeping. Christine is an “Enrolled Agent” and knows her stuff. Christine’s number is: 707-544-0606 and she is located at 1516 4th Street right here in Santa Rosa.
Quickly, our lady could “exchange” her Ashland property tax deferred to a rental property down here with no tax consequences. However, selling and taking the money from the sale to pay off her loan down here would most likely cause some tax consequences. How much I don’t know because I DO NOT give ou tax advice. If our listener di not wish to actively manage a rental property down here she could also “exchange” into a tennants in common or TIC anywhere in the nation. She could own a portion of a large office building, shopping center, apartment building, all tax deferred!! And NO tax consequences at the time of the sale.
