Posted by Mitch on September 03, 2002 at 17:08:45:
Hi Dave,
I’ll try to be more concise.
My wife and I wish to purchase a new home.
My wife’s father wants to use the proceeds from one of the two homes he now owns and intends to sell as a down-payment.
The home he wishes to sell is not his primary residence. The new home can become his primary residence or he can keep the other remaining home as his primary residence depending upon considerations and information learned from professionals such as you.
How can he use the proceeds from the sale for the new home and avoid capital gains taxes and/or gift taxes etc?
New home value is approximately $850,000. Proposed sale of my father-in-law’s existing home will result in a capital gain of approximately $275,000.
Even with that amount of down payment, it is most likely that all three of us shall need to be considered for financing purposes, and therefore need to be included on the title from the beginning of this process.
Thanks for any assistance you can offer. Sorry if this is still vague and terminologies improperly assigned.
What do I need to do as far as taxes go? Do I just fill out a 1099 at end of year? If so how much should I figure to take out for taxes? I have recently done a deal and unsure about my tax responsibilty.
Let’s assume that you are asking what you need to do on your tax return concerning a deal you recently completed, though that is not entirely clear that this point. Furthermore, you are equally vague on the reason you are asking about a 1099.
Unless you give us some information about the structure of the deal, no one on this board will be able to give you an intelligent answer.