Posted on: 02nd Aug, 2010 11:42 am
My parents would like to gift/sell their home valued at $360k to me for $260k. They have two children (me and my brother) and they would like to pay off their existing mortgage ($160k) and gift the remaining $100k to my brother.
My concern is that I would like to maintian their tax basis on the house (prop 13) if possible and I'm not sure it is possible in this situation. Also, I'm assuming that the $100k savings I receive by purchasing the home below market rate would be applied to their $1M lifetime gift limit for tax purposes.
Is it possible for me to maintain their prop 13 tax basis in this senerio? If not, do I have other options?
My concern is that I would like to maintian their tax basis on the house (prop 13) if possible and I'm not sure it is possible in this situation. Also, I'm assuming that the $100k savings I receive by purchasing the home below market rate would be applied to their $1M lifetime gift limit for tax purposes.
Is it possible for me to maintain their prop 13 tax basis in this senerio? If not, do I have other options?
Unless their current loan is an FHA loan it is unlikely you can just assume the property and loan. They can however seller it you for whatever price they choose.
As far as the(prop 13 concerns) and gift considerations it would be best to consult an attorney.
As far as the(prop 13 concerns) and gift considerations it would be best to consult an attorney.