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"The
old property that I sold was in
the name of my revocable living
trust. The lender on my new property
won't make a loan to the trust.
Is this a problem?"
There are many types of trusts,
and each type is handled differently
by Section 1031. Probably the
most common type of trust is the
revocable living trust. You can
tell if this is the type of trust
that you are dealing with if it
does not file a tax return. Luckily,
revocable living trusts are disregarded
for 1031 exchange purposes. This
means that whomever (?) owns the
trust is treated as having sold
the old property and is treated
as the buyer of the new property.
If that is you, your lender may
make the loan to you and you may
take title to the property in
your own name. Call us first and
we’ll double-check the type
of loan you have.
--The Experts
TEE-Shots
are Tips
from the Exchange
Experts
that are designed to make you think about, and ask questions about, the 1031 exchange process.
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