PN> VH> I anticipated that when I bought the land -- and last year was 
ffered
PN> VH> a nice profit.  I called my accountant, and he said "If you sell, the
PN> VH> buyer will have the land, and the IRS will have your profit." :-(
PN> Well, as you point out, there's the exchange option.  I don't know how
PN> often such a thing actually works out...
PN> And if you buy something as replacement you have the cost of the
PN> replacement to offset the gain.  Or perhaps a land contract with you as
PN> mortgagor might be an option.  Could even mean a premium to you.
PN> VH> You might work a trade -- if you can do that, there's no taxes
PN> The gain would be fairly small and would be offset against the NOL
PN> we're working on so tax consequence would be minimal.  The biggest
PN> issue is cash-flow.  I'm about at my limit so am real nervous about
PN> debt service.
PN> I may decide in another couple of months I'll have vacation behind me
PN> and the major portion of the re-hab I'm doing now to just go work for
PN> somebody for a short while -- that'll take cash-flow presssures off
PN> and I'll just ride this damn expanding marketplace hereabouts.
You should be seeing a land price drop in the Southwest soon, if the
drought holds.  That would be a good time to buy land -- the drought has
to end eventually, and if it doesn't, owing a piece of dry land will be
the least of your problems. :-)
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