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A friend wants to buy my existing home, swapping her home as part of the payment.We have agreed on a selling price for my home of $300,000, and for her home for $200,000. (I have just bought a new home so will live there, and use her home as a rental property). Payments on my home are $1125 per month (includes taxes). Payments on her home are $1062, I have a loan balance of 165,000 at 5.25%, she has remaining loan balance of 171,000 at 4.25%. I want all of $100,000 now or at least 50,000. She can pay that. What is the best way tax wise to do this deal? How do we swap the houses?
Thanks. I am a relative newbie to all this.If these are both personal homes. the gain is tax free — up to $250,000 for singles and $500,000 for couples
Just write it up. You should wrap the loan on your house and have her make payments to you directly so you know the payments get made on time.
READ her loan docs to know for sure what you are getting in to. Many home owners don’t even know that they have an ARM
If these are both personal homes. the gain is tax free — up to $250,000 for singles and $500,000 for couples
Just write it up. You should wrap the loan on your house and have her make payments to you directly so you know the payments get made on time.
READ her loan docs to know for sure what you are getting in to. Many home owners don’t even know that they have an ARM
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