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Conference nyoss1::market_investing

Title:	Market Investing

Moderator:	2155::michaud

Created:	Thu Jan 23 1992
Last Modified:	Thu Jun 05 1997
Last Successful Update:	Fri Jun 06 1997
Number of topics:	1060
Total number of notes:	10477

933.0. "Real estate trust " by NETCAD::WOLFF () Mon Oct 30 1995 10:19

Real estate trust - I entered this in the Real Estate notes file, but I am
thinking that some investment gurus might have the answer.

Is this legal and possible, and, if so, does it make financial sense?

My husband is over 55.  We've been trying to sell our house, with no luck.
We lowered the price, but action is about at a standstill, and we are 
considering renting it.  My question is:

Can we set up a real estate trust and sell our house to it?  
If so, can we then take the tax exemption for people over 55, $125,000.  

The house cost $350,000 7 years ago, has been on the market and has
not sold.  We are seriously considering renting it but are fearful that
if we do, we will miss the opportunity to get the exemption.  

So, can we sell the house to trust, which we own (for its present
value, about $315), collect the rent, and still take the exemption? This
is not our first home, so we have rollover profits.


Renee

T.R Title User Personal
Name Date Lines

933.1 I think you can do something along those lines 2303::TALCOTT Fri Nov 03 1995 08:45 13

T.R	Title	User	Personal Name	Date	Lines
933.1	I think you can do something along those lines	2303::TALCOTT		`Fri Nov 03 1995 08:45`	13
	We just purchased a home from a brother & sister who are probably in their 50s. Another of their relatives had actually, I believe, owned it. Don'd know if they died or just got too old to live there alone. In any case, the brother & sister split the proceeds from the sale. His half went into a trust and her half was a straight sale. This is waterfront property and my guess is that the place sold for much, much more than their cost basis as it was in the family for many years. Since this wasn't their primary residence and they weren't going to be buying a more expensive place they probably were looking at a rather large tax hit. I believe you can set up the trust, for instance, so that the money passes from the current generation of the family to the next and it's that next generation that takes the tax hit. Trace

We just purchased a home from a brother & sister who are probably in their 50s.
Another of their relatives had actually, I believe, owned it. Don'd know if they
died or just got too old to live there alone. In any case, the brother & sister
split the proceeds from the sale. His half went into a trust and her half was a
straight sale. This is waterfront property and my guess is that the place sold
for much, much more than their cost basis as it was in the family for many
years. Since this wasn't their primary residence and they weren't going to be
buying a more expensive place they probably were looking at a rather large tax
hit. I believe you can set up the trust, for instance, so that the money passes
from the current generation of the family to the next and it's that next
generation that takes the tax hit.

						Trace