Buying a rental from sellers doing a 1031 exchange

[Cassie Chun]

I’m buying a rental from sellers who are doing a 1031 exchange. We originally agreed on a $15,000 closing credit, but their qualified intermediary advised that they do a price reduction instead because a credit would have tax implications for their exchange. For obvious reasons, I’d prefer to realize the $15,000 savings at closing. Can anyone comment on whether it really matters from the Sellers (tax) perspective to do a credit vs. price reduction?

[Wayne Brooks]

@Cassie Chun Seems like it would still be a closing cost, reducing their net/cash.

@Dave Foster will know for sure.