The Glades Corporation has located a building that it would like to have for its new warehouse. The corporation has contacted the owner about making a trade for its existing property. The owner of the desired property is only willing to sell the building for cash as he will have little gain on the sale and has no use for the Glades property. Glades, however, has an extremely low basis in its property and is unwilling to sell it in order to purchase the new property. Is there an alternative that will satisfy Glades and the owner of the warehouse property?© BrainMass Inc. brainmass.com June 3, 2020, 8:06 pm ad1c9bdddf
Following are some options to do the deal:
1. Find a third party and make a 3 way trade. Glade would trade for something with a third party. The third party would secure financing on Glade's building and the cash would go to warehouse property ...
The solution presents four options to minimize tax on sale of a building by Glades Corporation where the completion of a like-kind exchange does not appear feasible.