Posted on: 21st Jan, 2013 02:26 pm
I am buying a home and the home was purchased by my mother in law for 118,000. We paid her for a year and she is giving that back for a down payment. The bank is writing that the home is being sold for 141,000 as to avoid the pmi. We are paying my mother in lay what we owe after the giving back of the month payments to her 109,000. Will this be a tax problem as the bank is showing that the home is being sold for more and it actually is not?
The bank is not writing what the home is being sold for, you are. The bank is not a party to the transaction. It is quite possible that you are setting up a taxable transaction. After reviewing all the specifics including the purchase contract a qualified tax attorney or CPA can give you an accurate analysis.
Hi Lhang,
You may face tax issues due to the whole transaction. So, as Guest has said. you should get in touch with a CPA and take his/her opinion in this regard. The CPA will be able to help you better in this regard.
You may face tax issues due to the whole transaction. So, as Guest has said. you should get in touch with a CPA and take his/her opinion in this regard. The CPA will be able to help you better in this regard.
Firstly, contact a qualified tax attorney and seek his advice when it comes to an issue like you're facing. Tax issues are a hassle that you're more than likely to face.