re: Would you guys take the money and run?

Take the 50,000.00 and run to the next deal. It's a lotto ticket, cash it. Property values could change, bad neighbors could take over neighborhood, ect... Take the cash!

quote:

---

Ask for 30. Make sure the wife is okay with it, of course, but $30K is a nice chunk. Well, $20 after taxes.

---

I think the extra 20k brings it to 87k prior to taxes. I would take that and run...

Have no idea. Really kind of strange. Wife is pissed but we decided at some point we are idiots if we dont take the money. As of now they offered 90k over purchase price we paid on july 31st. So we told them they pay the agent commissions, and we arent paying any costs, no negotiations, and no inspection period thinking they would say no (we offered to give them our inspection report) Of course they said sounds good. Lol. Waiting on contract tomorrow.

Just found out they are huge lsu fans so they are prob reading this thread. Haha. Maybe they could chime in and tell me where the gold is hidden in the walls!

quote:

---

Prob put it into another house. I vaguely remember some IRS rules about not having to pay the cap gains taxes from sale of home if you roll it into another house within 18 months. I'll have to look it up but we were intending to move so we'll probably start looking for another one.

---

I believe that used to be the case, but that's no longer the rule- 6 years ago, we sold our house about 3 months before the 2 year anniversary, and come tax time, we owed cap gains, even though we bought a new house.

Sounds to me like you have the opportunity to make a quick $50K after taxes/realtor fees. I'd have a hard time turning that down. $50K can buy a lot of another house. I'd try and find a way to convince the wife that selling is the right thing to do.

Do you think that the house will appraise for what the buyers are offering?

I thought you could "1031" it and just roll the money into another property to avoid cap gains tax.

ETA: I thought you had 90 days

quote:

---

Posted by chuckitdeep I thought you could "1031" it and just roll the money into another property to avoid cap gains tax. ETA: I thought you had 90 days

---

IRS

quote:

---

To qualify as a Section 1031 exchange, a deferred exchange must be distinguished from the case of a taxpayer simply selling one property and using the proceeds to purchase another property (which is a taxable transaction). Rather, in a deferred exchange, the disposition of the relinquished property and acquisition of the replacement property must be mutually dependent parts of an integrated transaction constituting an exchange of property. Taxpayers engaging in deferred exchanges generally use exchange facilitators under exchange agreements pursuant to rules provided in the Income Tax Regulations. .

---