riki3742
Returning Member

sale of property to family member at below market price

Recently my brother purchased a piece of land from mother well below market value. For the sake of this discussion, the original purchase price of the land was approximately $50,000. The market value of the property is approximately $30,000.  He bought the property for $5,000.  Given this is a non-arm's length transaction, what are the tax implications for my mother?  I'm assuming  there are gift tax implication on this transaction.  Thanks in advance.