He wants to trade houses (with boot, too)

behaviorkeltonMarch 5, 2011

So my neighbor wants to trade one of his houses for my house.

His house is nicer than mine in a variety of ways. He plans to rent my house.

I would give him my house and maybe $40,000.

We are wondering how this works when it comes to tax time... and/or how this type of deal can be made at all! Neither he nor I have ever done this sort of thing.

No financing would be involved.

Any ideas?

Thanks

Kelton

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kudzu9

It's not horribly difficult, but you need a lawyer involved to draw up the transfer documents, and you should talk with the lawyer or an accountant about the Federal and State tax implications. You will want a title search done, and you should also get a home inspection done of the other property before you agree to this.

    Bookmark   March 5, 2011 at 2:08PM
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behaviorkelton

Thanks!

I suppose that stands to reason.

Hmmmm, I think I meant to post this in "Buying and Selling", though!

Kelton

    Bookmark   March 5, 2011 at 3:38PM
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vala55

If that price is below market value, I would get his house inspected.

    Bookmark   March 5, 2011 at 9:16PM
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