Question for you

[OKdon]

Two friends each buy  80 acres our of a quarter section at the same time. This was when Iowa land was worth $3k per acre. In the following years the ag depression drove the land prices down to $1k per acre. They were entertaining the possibility of selling each other their 80's and each taking a $2000 per acre capital loss.

Would that even be possible according to IRS rules?  I don't know what they eventually did but they were considering it at the time.

[BA Deere]

No, but I`d love to hear them try and explain their way out of it  🙂     A similar scheme was tried by rich professionals that would each build a high priced house and then "rent" it to each other.

[OKdon]

Just guessing but I'll bet the lenders threw a wet rag on that deal. The original mortgages were based on a $3000 acre and the refinance would be on a $1000 acre. It might be difficult to explain that to a bank examiner.

[rawhide]

How about when congress says they reduced spending by 20% but forgot the part where it automatically goes up 50% so it is a net gain of 30% ?  That always seems to work.

[sw363535]

A private sale would have a hard time passing the market value test