Family gift of equity of 20% down on investment prop, purchase prices of 320k, loan amount of 256k, 64k gift of eq. Is there cap gain tax if the home was bought for 232k?
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Family gift of equity of 20% down on investment prop, purchase prices of 320k, loan amount of 256k, 64k gift of eq. Is there cap gain tax if the home was bought for 232k?
This is a dad to son gift on an investment property. Dad does not want to pay capital gains......is this possible because its family?
Family gift of equity of 20% down on investment prop, purchase prices of 320k, loan amount of 256k, 64k gift of eq. Is there cap gain tax if the home was bought for 232k?
@colemalt wrote: ....Dad does not want to pay capital gains......is this possible because its family?
No. Regardless of your relationship, and simply put, if the sales price (less selling expenses) is greater than your adjusted basis, you will have a capital gain.
Family gift of equity of 20% down on investment prop, purchase prices of 320k, loan amount of 256k, 64k gift of eq. Is there cap gain tax if the home was bought for 232k?
But will they only have to pay cap gains on the difference of the actual amount of cash they receive?
i.e. why would you have to pay capital gains on the gift of equity you are giving?
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