@holeinone1659 wrote:
I bought a second house for my son for $25,000 I sold it to him on a land contract. He paid me off and we sold the house for a $100,000 profit. We bought another house for $172,000 in my name and I sold it to him on another land contract. We applied the $100,000 as a down payment. Is this a taxable event?
Yes to all of it.
If you sold the first house to your son at a gain, your gain would be taxable to you.
If your son sold the first house for a $100,000 profit, yes, that gain is taxable (you said "we", but I assume you meant HE sold it). Unless the sale of the first house was done through a third-party intermediary for a 1031 Exchange, it does not matter what he did with the $100,000 profit.
If you sold the second house to your son at a gain, your gain would be taxable to you. The $100,000 would be applied to that gain.
