My neighbor wants to TRADE houses (with some 'boot')
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.
We're wondering if there are any advantages or disadvantages to this type of deal as opposed to just selling each of our houses and then buying the usual way.
No financing would be involved.