Exchanging Thoughts

Installment Sales Can Work with Some Planning

Posted by Margo McDonnell on Mon, Nov 26, 2012

On this More More Monday, we are looking at making an installment sale work with a 1031 tax-deferred exchange. 

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Topics: 1031 exchange and installment sales

Making an Installment Sale Work with a 1031 Exchange

Posted by Margo McDonnell on Wed, Aug 15, 2012

It is always best to receive all cash for the sale of a relinquished property in a 1031 exchange. For a variety of reasons, sellers are often asked to provide financing to the buyer of the relinquished property.  Many times, the Note is a good investment vehicle for the Seller, especially since so many other investments have such low returns. However, if the Seller intends to complete a 1031 exchange, the amount of the Note is not like-kind property to real estate and is considered “boot” or taxable gain. The remaining portion of the net selling price can be deferred through the 1031 exchange. 

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Topics: 1031 exchange and installment sales