No wedding planning until June. New date is reserved at Odyssey for June 19th. DD2 and FSIL will marry quietly, have baby and then we will have a recommitment of vows by the minister and the reception. This will be an evening wedding. A bit more $$ but will allow guests to travel in am and only have to spend 1 night in hotel or with family. Work schedules will be unaffected. No expenses left to pay except other half of Odyssey fee, flowers, and officiant. Have bit ordered the mints yet so they will be fresh when we fill gift boxes.
New news! Have another offer on the Yelm property. Full price (we may have priced it a bit low), 1031 compliance, and 60 days to do their due diligence. Problem is that I have to be very careful with counter offer since buyers are the selling broker, our selling agent, and a builder. This means that there is a conflict of interest between "our" agent and the selling agent and buyer all being the same person - or at east 1/3 of the buyers. Also with a complete lockdown on its way we will be hard pressed to find a ranch property to buy. There is a time limit with a 1031 exchange. There are also some terms in the contract we won't accept, and DH wants to counter with a reduction in the sales commission as well, since the agent/broker is part of this buyer consortium
Now, where to look? Northeast Texas? But Bay and BJ might move . . . . Oklahoma? same problem . . . . Mid Utah? - friend there will farm the hay ranch for us - he grows hay now, raises Dorper sheep commercially, and would like produce more hay . . . . Buy nothing, just pay the capital gains taxes and bank the $$? But Elizabeth Warren and the Dems are coming for us with a wealth tax . . . . WHAT TO DO? And how to look at property threatened with huge fines if we travel? HELP!
If you pick a state where you have a friend there, you could look at places online and have the friend do a walk through and Face Time or Zoom the walk through so you can "see" it better than just pictures online. Plus the friend would probably know a little better what you are looking for than a realtor. Sounds like a great opportunity but just need to clear a few hurdles first.
What is the time limit for reinvestment? We love Smith County, but I am seriously considering Houston county. DD is job shopping again, no telling where they will end up. She is looking at south Dallas. Our son has 35 acres in Houston County, family land that goes back over 100 years. He may possibly be able to buy more next to his, that would bring him up to 50 acres. DD may move around, I really don't want to live right next to a big city. DS, if he builds a house on his land, will never move. It will always be his home, base of operations. DS's land is between Crockett and Lufkin, very rural. Perfect!
I will have to look up Houston County. We need to be within driving distance of a good medical facility at our ages. We want to bring our sheep with us, or rather the best ones, and our dogs. We need water, so east Texas.
1031 Exchange IRS rules require the seller of a 1031 exchange to list the property for which they are planning to "exchange" their sale property before escrow closes. The 1032 exchange rolls over the capital gains taxes into the new like kind property. In this case, since our property was a rental we can roll over into any kind of commercial, rental, or business (farm) property. We just have to find a property, have an offer accepted, and show it as our planned purchase within certain time period before escrow closes. Also in a 1031 exchange al the money goes through a 1032 Trustee. You cannot have any access to the money or funds from the property. If you do, the 1031 Exchange becomes invalid and you are responsible for capital gains taxes on any profits whether you continue the purchase of the new property or not.
If necessary we can roll the 1032 Exchange into investment property - rental houses - but that would not give us the option to move onto a ranch that is already set up for our sheep and dogs when we sell our California property.
This is good opportunity to sell and buy a small ranch now. Then after DD2's June wedding we would take several months living in our 5th wheel trailer on the property to improve fencing for our dogs and sheep, build barns or shelters etc. First though we have to counter offer on this offer.
They are asking 60 days to do their prelim stuff. If it s in the contract that we must have a 1031 then they will have to extend until we have one However, we need to report that we have an offer in on property and specify which property or properties we have offers on. I have to look up the actual time limit.
The problem here is that I can't trust our listing agent to be on our side since he is one of the buyers and also represents the buyers as well. That means I have to look everything up and do most of the stuff myself to double check him.
I am sure that he will be ok. It just means I have to be that much more careful in reading and specifying everything. I always read everything before signing anyway though. When signing escrow papers usually the notaries only want to give you about 30 minutes to rush through and sign everything. I tell them to allow 2 hours because I read every word of the final docs through. Once I caught some errors that our interest rate by 1.5% and the resulting payment by several hundreds dollars. In spite of being told the documents would be changed after we signed them, we refused to sign the docs. They were sent back and redone otherwise we would have been locked into a completely different contract! The finance people said ti was a mistake in the office but we weren't going to sign anything that was not correct.