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Mark Anderson
Mark Anderson, Tax Attorney
Category: Tax
Satisfied Customers: 540
Experience:  Tax attorney and accountant
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I'm interested in exploring my options a farm I own in

Customer Question

I'm interested in exploring my options for selling a farm I own in Colorado through owner financing. ...I inherited the farm about a year ago when my Grandmother passed away. ...However, Grandma made me a Joint owner on the property back around 2002. This was good in that we avoided probate, but I don't believe I can adjust the tax basis on the property. The prop is fully paid off and I believe it's worth 350-360K. As such, I'm wondering about owner financing in order to spread out the tax consequences. ...Unfortunately, it seems there are a myriad of pitfalls with owner financing or Lease Option type transactions. ...I have currently leased the property through next spring, but am now trying to better understand my options for selling it.
Thank You
Andrew
Submitted: 9 months ago.
Category: Tax
Expert:  Mark Anderson replied 9 months ago.

You could do a 1031 exchange.

Expert:  Mark Anderson replied 9 months ago.

I am not sure what you are trying to do with financing or a lease option.

Expert:  Mark Anderson replied 9 months ago.

Have you talked to a real estate broker about selling it? I am not sure what are asking. You could do an installment sale.

Expert:  Mark Anderson replied 9 months ago.

You could claim it as your personal residence for two years to exclude the sale on the home:

http://www.nolo.com/legal-encyclopedia/the-250000500000-home-sale-tax-exclusion.html