I�m sorry I neglected to name the brand in my first post. I eliminated the one system that was only 14 SEER. The brand the second guy is pushing is Amana and I have included the models numbers for those systems in this update of the three proposals I�m considering. I live in MD. Both guys did a load calculation and checked the ductwork, etc. I am replacing inside and outside units, I am getting my ductwork sealed, and I am about to have a whole house energy audit done, but I have to get this heat pump ordered before I can do anything else! I just found out that the guy we�ve been using for 20 years, and who we have been very happy with, is not an authorized dealer for any brand. He is the one recommending the Bryant. I don�t know how this news should affect my decision? This is the first I�ve heard of electronic demand defrost! Here are the updated proposals: The first guy offers the following: Bryant Preferred Heat Pump, Bryant Preferred Variable Speed Fan Coil. � ARI Rating of 15.0 SEER with Certificate � National Average Operating Cost for this System is $1031/yr � Honeywell Bypass Humidifier � Manual J approved Load Calculation � Fully sealed ductwork (UL Listed foil backed tape) where we install � Recovery and Disposal of Old R-22 � Removal and Recycling of Old Equipment � New Outdoor Electrical Disconnect � UV Resistant Re-Enforced Plastic Pad � 6" Plastic Legs � Honeywell Digital Set Back Thermostat for Added Energy Savings � Clean Copper Line Set with Approved Cleaner � Honeywell MERV 10 Filter for Clean Indoor Air � � Five Year parts warranty � Five Year labor warranty � Ten Year compressor warranty The total cost of the installation is: $7,951 The second guy offers: System #1 Amana SSZ14 www.amana-hac.com/Home/Products/HeatPumpSystems/SSZ14Distinctions/tabid/641/Default.aspx - 14 SEER Condensing unit (outside) with single speed fan motor and high-efficiency Copeland scroll compressor - Air Handler (inside) with Variable Speed blower motor (brings system up to 16 SEER) and electric back up heat - New 25ft Line Set - Digital Programmable Thermostat - A new pad for your condenser to sit on outside - All Labor (includes disposal of old equipment) - Lifetime Compressor Replacement Warranty - 10yr Parts Warranty - 10yr Labor Warranty Total: $8,752 System #2 Amana ASZC16 ttp://www.amana-hac.com/Home/Products/HeatPumpSystems/16SEERASZC16/tabid/856/Default.aspx - 16 SEER Condensing unit (outside) with 2-speed fan motor and 2-stage Copeland UltraTech scroll compressor - Air Handler (inside) with Variable Speed blower motor (brings system up to 17 SEER) and electric back up heat - New 25ft Line Set - Touch Screen Programmable Thermostat - A new pad for your condenser to sit on outside - All Labor (includes disposal of old equipment) - Lifetime Unit Replacement Warranty - 10yr Labor Warranty - One Year Club Membership (Service Contract) - This system is eligible for $500 Federal Tax credit Total: $10,830

A "Starker exchange" was codified by the IRS. You may be looking to TIC exchange (Tenants in Common) governed by some fairly strict IRS regulations (although no SEC oversight as they are real estate investments not securities). You need to find a registered-rep to hook you up with a TIC Facilitator. This is the TICA website. Maybe you get in touch with them through the contact page and they can recommend a qualified intermediary (accommodator) or you can learn more about TIC exchanges? Hopefully the TICA association can direct you to someone in your general area and more information concerning your questions. If you decide to take the cash because you are wary, the tax rate is currently only 15%. Deferring tax on the gains by reinvesting may not be a wise move for you.

We are considering doing this, primarily to defer the significant capital gains tax on rental property we own in California. We live in Texas now, and are thinking about selling the Calif. property and 'exchanging' it for rental properties in Texas. We'd like to begin talks with a 1031 exchange specialist just to get a bit more familiar with the process and have some basic questions answered. Should we try to find and meet with someone here in Texas, or should we just work with a 1031 specialist/realtor in California? Also, for those of you who have been down this road, any words of wisdom? As always, TIA!

Wouldn't it be a useful option to ask one's tax preparer, who has a good view of one's financial situation, for some suggestions? No. The problem is that you are trying to get your tax preparer (a pretty general term) to do the job of a financial planner. It is just about the same logic as asking the plumber to wire your house, I mean he is working inside the walls so why not run some electric when he is in there. Interest income doesn't necessarily equal dividend income. You are using two things interchangeably that are not necessarily interchangeable. Different investments have completely different risk profiles and returns. I am not at all familiar with Canadian tax law, but I would be very hesitant telling someone to invest in the Canadian exchange for a tax advantage. Over the last ten years, the US S&P Index has grown 4.5 times faster than the SP/TSX (Canadian S&P index), meanwhile the SP/TSX typically has a higher dividend yield. I am not trying to give investing advice or anything of the sort, but I am trying to caution against letting the tail wag the dog. I believe this was Elmer's original point, don't get so wrapped up in tax avoidance that you actually perfect income or wealth avoidance. If you want tax planning then find someone who is qualified/certified to do tax planning, and if you want your house rewired call an electrician, even if your plumber has a great picture of the inside of your walls.