frankie77
|
You don't actually have to buy it. You can just do a Quit Claim Deed and have it recorded at your county courthouse. In order for you to avoid taxes when you sell it, you will need to live in it for 2 years. Did your dad live in the house as his primary residence for at least 2 of the last 5 years? He should talk to an accountant. I believe the rule is 2 out of the last 5 years. |
|
T White
 |
Yes, it's called a quit claim deed.
people do it all the time. |
|
Big Deal Maker
|
He can sell his home if he has lived in it for 2 years.
And there would be no capital gains. If it is a home that was used as a second home i think it would be best to talk it over with his tax attorney.
As far you as you buying his home for the dollar. You can however if you go to sell right away you would Be paying the capital gains just like your dad. But even more than he would be paying. He can also gift the home over to you. |
|
altarilg
|
I'm not a real estate agent, but this is my best guess after buying a house. Someone can sell their house for whatever amount they'd like. So, yeah, you can buy it for $1. However, your dad would have a Capital Loss deduction (selling an investment for less than he paid). You would have a Capital Gain (selling an investment for more than you bought it for) when you resold it, which you would have to pay taxes on. There are "minimums" on Capital Gains, though, so you'd have to make at least a $250,000 profit. |
|
Leather and Lace
|
If he owns the house he can sell it for any amount he wants. If you buy it, you are free to do with it as you choose. |
|
Paula M
|
you sell that house after purchasing it for a buck.....you will pay capital gains on 100% of the selling price.....
its a bad idea.....keep renting it....or have dad move in for the next two years....
If you inherit the house down the road...you get a step up cost basis which will save you alot in taxes. |
|
Nancy F
 |
yes.. if he owns his house nd it is completely paid off. |
|
Waqar
 |
Send me an e-mail, I can help you if you live in CA. |
|
eddygordo19
|
Even assuming you could get away with the $1 sale (no gift tax), you would still get hit with the cap gains tax if you flipped the house.
If he doesn't want to pay the cap gains tax or live in the house for a couple years to avoid the cap gains tax, then he should rent it to make economic use of the property. |
|
Gotta B. Covered
 |
On a Quit Claim Deed you can purchase for "Ten dollars and other considerations". Those are the words commonly used on the document for this situation. They are written in the place for the purchase price. And yes, it's all legal.
I did this when buying the family home years ago and no one had to pay any taxes for the title being transferred that way. |
|
efflandt
 |
If he lived in it at least 2 of the past 5 years he would get a $250,000 captial gains exclusion ($500,000 if married). Even if he does get taxed some it would be at lower long term captial gain rate.
If he sells it to you for $1, he would have to file a gift tax return for fair market value minus the $1 (even if no tax is due) and your cost basis would be his cost basis (his purchase cost and improvements). And any profit if you flip it (without living in it for 2 years) would be short term capital gain (fully taxed).
If you inherit it, the cost basis gets stepped up to fair market value at time of death, and you could sell it immediately for little or no taxable gain and lots of money. |
|
dinger
|
Yes, if he want to sell it for that price. |
|
Curtis B
|
Great post! I completely understand your question. Money is hard for a lot of people right now since the enconomy is going down. My friend told me about this website of an organization that gives people up to $1500 towards their rent or mortgage. It's available in most areas, so I think you should check it out.
http://www.help-house-rent-mortgage.org
Hope this helps! |
|
frak1a12345
|
It is far better to inherit than to be gifted the property due to the taxes YOU will have to pay unless he sells it to you for full value(and he pays taxes). If you want to escape the capital gains tax then you must inherit the property and no taxes will be due and you will receive a stepped up cost basis which is market value at the time of your father's death. You can then sell it and no taxes will be due. I like the idea of you renting the property--it allows your father to depreciate the property and get a tax break. You can rent for below market value as long as it is not terribly below and you won't have trouble with the IRS. Since it has sat empty for 3 years he can not claim that as his personal residence and get the lifetime exclusion. It is an investment property. He may be able to use the gift tax exclusion if you insist on taking over the property now. A consult with a tax accountant will help you decide which way to go. |
|
USMCSTEPH
 |
yeah go for it lol.... then resale it lol |
|
bburns151
|
you can sell a house for $1 minimum in Canada. my mom bought my dad's house for that amount to change the ownership with the least amount of paperwork possible |
|
one420blaze
|
no, but you can find another one on ebay |
|
carblue ♥
 |
I think you may still get into a taxing issue if it is bought for a dollar, but I am not really sure. Check into by calling a local realtor or title company. If you can - than thank your daddio! |
|
GJ
|
ill offer him $2 |
|
Dani
|
Short answer, no-absolutely not. The only provision that the irs grants to selling within the family is interest forgiveness. If you bought the house at a traditional price and interest rate, your dad could forgive a certain percentage of interest payments per annum. Only other thing I can think of is that if hes fixing up the house to rent the repairs would be deductible against the capital gains. |
|
Brennan L
|
you can from a direct parent fir a dollar |
|
Danny Jat
|
No. |
|
Alexis
|
ARE YOU NEW!!!???
yes ofcaurse hun you can buy your dads box for a dollar!!
or even i saw a deal on a medium sized box for half price!!!
:D
dont get offended!!! |
|
| |
|
Homepage 
Financial
Forum 
Renting & Real Estate 
No Spam
Adult 
Gambling
Unfinished
Deception
Plagiarism
Not English
