House Swap

[Michelle Morris]

I've seen some postings on Craigslist for this, you might want to post an ad there.

[Naptowner]

Originally Posted by TraderJack

I did a very quick search about this subject and while it seems to be 'sweeping the nation', it sounds little more that an assisted 1031 exchange. One web site said,'A home exchange is built on trust, and the mutual respect of each other's property is what makes home exchange possible'.

That sounds fantastic, but when was the last time a buyer and a seller trusted each other about anything?

After hundreds of years of mustrust and adversarial relationships, I find I difficult to believe that buyers and sellers are suddenly lovey-dovey!

This sounds like repackaging of the 1031 exchange product. While it is a good product, it's an income device for tax dererral. Using it to exchange homes is a new twist that I am not familiar with.

I guess I'll do more research!!!

You can't do a 1031 exchange for your primary residence because it's not held as investment property or for use in business or trade. (or you can do one, but it doesn't meet the IRS guidelines for a 1031). And since you're exempt from tax on the gain from the sale of your primary or secondary residence (up to a point), there's not much incentive to fashion it as a 1031 anyway. Sounds more like a way for people who need a larger or smaller house than they currently own to find someone else in the opposite situation, i.e. empty nesters swapping their 4 bedroom for a young married couple's 2 bedroom.

[TraderJack]

Originally Posted by Naptowner

You can't do a 1031 exchange for your primary residence because it's not held as investment property or for use in business or trade. (or you can do one, but it doesn't meet the IRS guidelines for a 1031). And since you're exempt from tax on the gain from the sale of your primary or secondary residence (up to a point), there's not much incentive to fashion it as a 1031 anyway. Sounds more like a way for people who need a larger or smaller house than they currently own to find someone else in the opposite situation, i.e. empty nesters swapping their 4 bedroom for a young married couple's 2 bedroom.

We're all aware of the specifications of the 1031 exchange and it's tax implications. I said it looked to be nothing more than an assisted 1031 exchange. Maybe I used the wrong verbage for you.

The 'swapping' of houses is merely two desparate people finding each other in the dark, facilitated by individuals chasing a buck.

[Naptowner]

Originally Posted by TraderJack

We're all aware of the specifications of the 1031 exchange and it's tax implications. I said it looked to be nothing more than an assisted 1031 exchange. Maybe I used the wrong verbage for you.

Sorry, didn't know you had inside info on the collective consciousness of everyone who reads this board.

Many people misunderstand the requirements for a 1031. MikiJayne said she thought it sounded like a 1031. You yourself said you thought swapping homes sounded like a new twist on a 1031, and that this was little more than an assisted 1031 exchange. I was trying to clarify that issue for you - you can 1031 a residential home, but only if it's held as an investment property.

[TraderJack]

And this used to be such a nice neighborhood...

[Naptowner]

What's that supposed to mean? I'm just trying to help. You seem offended that I commented on whether it could be a 1031, and I'm not sure why.

[AKF]

You know Trader Jack with all due respect, you sound awfully arrogant.

To make assumptions of what EVERYONE knows is outrageous. I for one knew nothing about the "1031 exhcange". And FYI, I am NOT trying to swap houses to "chase after a buck" as you said. Not EVERYONE has a silver spoon stuck in their mouths and we as a Nation are going through some pretty rough times right now...perhaps you need to switch on the tv and watch the news or better yet, instead of giving your "biased" opinions on Citi Data, you could try using the internet to gain some insight on how people are doing what they can to keep their heads up above water right now.

I posted this message simply to get advice, not get butchered on by someone who knows absolutely NOTHING about me, yet, continues to KNOW IT ALL~!

[AKF]

Originally Posted by Naptowner

What's that supposed to mean? I'm just trying to help. You seem offended that I commented on whether it could be a 1031, and I'm not sure why.

I truly appreciate your input and help. Thanks for your advice and opinion. Wish we had more people like you on board...simply helpful and not passing judgement on others!