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[quote=Anonymous][quote=Anonymous]I had a similar situation in the condo complex I own in. A neighbor who had unit as a rental property forever, like 25 years had a tenant who wanted to buy it. However, he had been depreciationg it down. So it be a big cap gains hit if sold.

He also on his primary had a decent size mortgage as traded up.

The tenant asked him what his basis was if he sold. Meaning if he added up all repairs and improvements how much is max he could see it for and pay no tax.

Tenant came back with this offer. He buy it for full market price on paper minus six percent as no realtor and another six percent as he will take it as is and proposed the following.

The full market price of home of home would be on paper. He would at closing give him a check equal to the current max value he can receive for home tax free. The remaining amount would be a check not made out to him but the bank he holds the large morgage on is current home to pay down a big chunk of the mortgage.

He ended up doing it and got rid of place and tax headache in one day. He also knocked his mortage in half on his main home.

This worked well as buyer has cash and he owned place mortgage free.

The seller well I think it is dubious tax recording but the buyer what seller does on his taxes next year is not his problem.

[/quote]

Hi j1/j2 guy!![/quote]

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