Imagine you are living in a four bedroom house on two acres in western North Carolina. You sell that house and buy a ocean front condominium. You own a riding lawn mower. What are you going to do with the riding lawn mower? You decide to sell it for $1000. You advertise it. You get a call from someone that asks if you would trade the mower for a Hobie sail boat. Would you?
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| Exchanging real estate can reduce IRS taxes a lot call me |
Let's reverse this scenario. What if you lived in a ocean front condominium and you had your Hobie sail boat for sale because you are moving to a four bedroom house in Hendersonville, North Carolina? Someone called and offered to trade you a riding mower for your sailboat. Would you?
Just as trading or swapping makes sense with other things, sometimes trading makes sense with real estate. Imagine you have a house in western North Carolina that you want to sell. Everyone understands " Here is the $500,000 that you want for your house. Can we pay cash?". Cash is easy to explain. It requires no creativity. What if someone called and asked if you would trade your house in Hendersonville, North Carolina for a four unit apartment building in Orlando, Florida. Nine out of ten Realtors would tell the caller no without even asking their client. Could this be a good deal? It could be a fabulous deal. There are a dozen factors that could make it a great deal. If you lived near Orlando, Florida, things would really be looking good. If you were familiar with landlording and rentals, this would be a plus. If you had recently retired and really were not sure where you were going when the Hendersonville house sold. If you bought your $500,000 house in Hendersonville in 1984 for $65,000, exchanging the house instead of selling it would change your IRS tax bill from YIKES to ZERO. You could defer your capital gains until you sold the four unit building through a tax loophole called section 1031 of the IRS code. There is a good reason for exchanging.
If you own a house near Greenville, South Carolina and you would like to trade it for a house and thirty acres near Greensboro, North Carolina, call me.
Even if you and your Realtor are not aggressively looking for an exchange, keep your eyes and your mind open. If someone suggest something, investigate it. If you owned a house in Florida, could you trade it for a house in western Norh Carolina? You never know until you ask.
If you are looking for a good Realtor to help you solve a real estate problem, call me, Ron Climer. My phone is 828 755 6996. I work with Keller Williams Realty in Hendersonville, North Carolina. I am licensed in North and South Carolina.
www.lakeadgerforsale.com www.ronclimer.com
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