Posted by John K Haslach, CPA, MST on May 16, 2006 at 16:33:29:
There are potential gift tax and estate tax consequenses here. You should discuss with a qualified professional. In my Estate and Gift Tax class, someone asked the professor how anyone could find out about something like this. His response was that someone he knew who took that attitude was now doing time in a Club Fed.
Family investment - Posted by Melanie Schwartz
Posted by Melanie Schwartz on May 10, 2006 at 18:55:02:
My parents own two homes - the one they live in and the one I live in. They have owned the home I live in for 8 years and I am the only one to have lived in it. I do not pay rent and they do not claim it as a rental property. The property was purchased for 225K and is expected to sell for 580K.
My parents would like to take the equity pay off some debts and reinvest the rest into a home with me so we would be co-owners of the new home. We are figuring that 88K will be the tax bill for selling the house I now live in. The question is…is there a way to avoid the heafty taxes (88K!)so that money can be used instead on the new property? I realize that taxes will definitely owe taxes on the portion used to pay off debt.
Re: Family investment - Posted by dutch
Posted by dutch on May 12, 2006 at 08:19:17:
Why not just refi it or get a HELOC for the equity they need. They keep the house and you still get a place to live?
Or why don’t you buy it from them and give them the cash?
Lots of ways to do this. Is their goal to sell, to get cash, or to avoid taxes? Sometimes, they are not all compatible at the same time.
Dutch
OKHomesavers
Re: Family investment - Posted by Rainbow
Posted by Rainbow on May 11, 2006 at 07:36:45:
If I save you 88K, can I send you a 10K bill for the consultation fee?
I don’t know if this is the answer, but I think this might be.
1031 Exchange, look into it.
800-631-1031 ask for Rich Behrle