Buying down is taxable...
Submitted by Bridget Blevins on Mon, 06/23/2003 - 01:00
If I buy down, how much is taxable? Or does that screw up my exchange?
In order to not pay any tax, you must buy equal or up. If you buy down, the amount of the buy down is taxable. For example, if you sell your Old Property for $100,000 and you buy the New Property for $90,000, you will pay tax on the $10,000 buy down and the whole $10,000 will be taxable.
--The Experts
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