Posted by William L. Exeter on November 08, 2004 at 10:47:08:
A dry closing does not work. The fact that the closing has occured would trigger the tax. You may want to look at an installment sale option so that teh majority of the funds are paid in 2005, but there are risks with that as well.
End of year closing-tax issues - Posted by Ben (NJ)
Posted by Ben (NJ) on November 07, 2004 at 18:46:15:
I have a buyer for a property I own. I want to close in early 2005 to defer the cap gain. He wants to close in 2004.
Is there any way to satisfy both needs? Would a “dry” closing work (ie paperwork done of 12/31/04 but funds distributed on 1/1/05)? Would this work? Is it kosher? All help appreciated!