Re: Trading places

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Posted by Christine Baker on September 10, 1998 at 23:14:28:

In Reply to: Trading places posted by Jack on September 10, 1998 at 17:00:14:

: Is it possible for two interested parties to exchange homes
: without buying and selling ? The idea is to somehow preserve
: the current property tax assessments. Or does one HAVE to
: triple his property tax bill in any exchange, by law ? (that
: question was sarcastically rhetorical)

Some California Counties have re-assessment exemptions for transfers from parents to children as well as a way for senior citizens to preserve their low assessments. Call your County!

Other than that, you could lease each others properties, but it's way more hassle than it's worth.

You'd convert the properties to rentals, losing out on the capital gains benefits for residences. The new tax laws provide for $250,000 per person tax free every couple years for capital gains from the sale of a residence (talk to your CPA.)

: Would it also be possible to switch the properties on the
: outstanding mortgages too ? Provided, of course, that the
: present property values are higher than the outstanding
: balances, would the banks be willing and able to switch the
: properties securing the loans ?

Nope. And there's really no purpose to it.

Rates are lower than in many years! If you want to make a move, now is the time to do it.

Good luck! Christine

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