Yes Rob, you're the buyer. Like I said, I doubt this pertains to you
as much as it does to the seller. With Starker exchanges, you have to
follow the letter of the law exactly or your (seller) exchange will
lose its tax advantages. So the Seller is trying to set the (paper)
record straight, because of some technicality he screwed up. That's my
best guess, he's setting the record straight, but do talk to your
lawyer.

RL

On Oct 28, 5:14 pm, Rob <Robg...[at]epix.net> wrote:
- quote -

I'm the original poster and I'm the buyer. I believe the transaction
permits the seller to roll over the proceeds of the sale and the gains
into another property without taxation....


raylopez99 wrote:
- quote -

I read this differently. Consult a tax professional, but it doesn't
seem like you, the seller, is going to have to do anything. More
likely the buyer is trying to set up a paper trail so he can qualify
for a 1031 (Starker) exchange, on the advice of his lawyer. But it's
not clear, so talk to your lawyer first.

RL

joetaxpayer wrote:

- quote -

Rob wrote:

- quote -

From his end, what he's doing is swapping the property he owns for
another. This is how he'd avoid having the sale of this on be a taxable
event for him. He's trying to arrange for you to buy the other property
to then swap with him. If all goes right, the deal will be transparent
to you, you will own the property you wish to buy at the price you
agreed to.
I'm not so comfortable that he sprung this on you the way he did, but
maybe he was trying to arrange this and the deal just went through for
him on the second property. So I wouldn't be so quick to attribute any
bad motives to him.
The deal is now a bit more complex than before. I would recommend you
run this by a real estate attorney familiar with the 1031 exchange, and
have him make sure all new paperwork is in order.
JOE

I am getting ready to settle on my new home next week. The previous
owner did not live in the home, but rented it out. We had already signed
a contract, but I got something in the mail stating that our previous
agreement is now voided and the sale is now going to be an "exchange" of
property with an intermediary. I read through the paperwork and
apparently the seller is utilizing a tax law called "1031" which allows
the seller to roll the proceeds from the sale of one income property to
another without being taxed for capital gains.

Anyway, long story short: should I be concerned that this change has
been set up? Does the fact that the sale is a 1031 sale have any effect
on me? Should I consult a lawyer specifically related to this issue? The
home is a duplex in which I will live in part and the other part will be
rented.

Thanks in advance for any information.