Seller financing can make 1031 taxable UNLESS...

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If the buyer of your property wants you to carry financing on the sale, the owner carry note will be taxable in a 1031 exchange unless you read this article first.

It explains how in times like these, when banks are more or less reluctant to loan dollars, potential home buyers may have a hard time finding the funds needed to purchase the property you're selling. If you're anxious to sell the property, you could help them by financing the difference. But beware: if your sale is part of a 1031 exchange, this could result in a tax hit for you.

HOWEVER, there are things you can do to structure the transaction to minimize, or even eliminate, the tax hit. Read Gary Gorman's article, "Seller Financing will impact your 1031 exchange" to find out more..

The 1031 Experts

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