KillJoy Posted March 23, 2012 Report Share Posted March 23, 2012 Can you sell your house that you own free and clear for $1? If so, what happens for the buyer? Do they pay tax on the $1, or on "the value" of the home? KillJoy Quote Link to comment Share on other sites More sharing options...
STEVE-O Posted March 23, 2012 Report Share Posted March 23, 2012 Pretty sure you don't pay sales tax unless capital gains exceed 250,000 and iirc its 500,000 if filing jointly Quote Link to comment Share on other sites More sharing options...
RyM3rC Posted March 23, 2012 Report Share Posted March 23, 2012 You can sell it for anything you want, but I'll gladly give you $2 for it right now, cash in hand! That's DOUBLE!!! Quote Link to comment Share on other sites More sharing options...
greg1647545532 Posted March 23, 2012 Report Share Posted March 23, 2012 There's no sales tax on house sales, but the owners' new property tax would be based on the assessed value. I think you'd have a hard time convincing the IRS that this was a legitimate $1 sale as opposed to a gift. You may have to pay capital gains tax and the recipient may have to pay income tax, but the rules appear to be way over my head: http://www.bankrate.com/brm/itax/tax_adviser/20060531a1.asp Quote Link to comment Share on other sites More sharing options...
Brandon Posted March 23, 2012 Report Share Posted March 23, 2012 There's no sales tax on house sales, but the owners' new property tax would be based on the assessed value. I think you'd have a hard time convincing the IRS that this was a legitimate $1 sale as opposed to a gift. You may have to pay capital gains tax and the recipient may have to pay income tax, but the rules appear to be way over my head: http://www.bankrate.com/brm/itax/tax_adviser/20060531a1.asp You're paying capital gains tax, no if and or buts (sadly), no matter how much you try and depreciate it. This will throw a red flag almost immediately with title agency's and the state and federal revenue services. Quote Link to comment Share on other sites More sharing options...
jeffro Posted March 23, 2012 Report Share Posted March 23, 2012 http://davethomas14.files.wordpress.com/2012/01/dave-hester-storage-wars.jpg?w=614 3$ Quote Link to comment Share on other sites More sharing options...
airwg2189 Posted March 23, 2012 Report Share Posted March 23, 2012 $20 final offer Quote Link to comment Share on other sites More sharing options...
Guest Hal Posted March 23, 2012 Report Share Posted March 23, 2012 I'll gib ya $26. Quote Link to comment Share on other sites More sharing options...
AWW$HEEET Posted March 23, 2012 Report Share Posted March 23, 2012 i will end the bid rite now for $50 folks Quote Link to comment Share on other sites More sharing options...
AngryBMW Posted March 23, 2012 Report Share Posted March 23, 2012 i will end the bid rite now for $50 folks You will need homeowners insurance...don't forget about that. -Marc Quote Link to comment Share on other sites More sharing options...
AWW$HEEET Posted March 23, 2012 Report Share Posted March 23, 2012 You will need homeowners insurance...don't forget about that. -Marc OH YEAH because title company Quote Link to comment Share on other sites More sharing options...
KillJoy Posted March 23, 2012 Author Report Share Posted March 23, 2012 This is the situation. We will be purchasing my Parent's house. The thought is to buy it for $1. I know this will throw a Red Flag, and I will have to pay SOMETHING (what would be normal for a realistic purchase). Once the house is mine, get a Home Equity Loan for the Purchase amount. The interest would be ~ 1/2.... so.... win /win! KillJoy Quote Link to comment Share on other sites More sharing options...
Trouble Maker Posted March 23, 2012 Report Share Posted March 23, 2012 I didn't think you paid cap gains on 1 house i.e. the house you lived in? If you had more than 1 house, so a second rental for example, and you sold the 2nd rental house, then you paid cap gains on it? Quote Link to comment Share on other sites More sharing options...
KillJoy Posted March 23, 2012 Author Report Share Posted March 23, 2012 I didn't think you paid cap gains on 1 house i.e. the house you lived in? If you had more than 1 house, so a second rental for example, and you sold the 2nd rental house, then you paid cap gains on it? I do not think you pay Cap Gains on your primary residence. KillJoy Quote Link to comment Share on other sites More sharing options...
AngryBMW Posted March 23, 2012 Report Share Posted March 23, 2012 This is the situation. We will be purchasing my Parent's house. The thought is to buy it for $1. I know this will throw a Red Flag, and I will have to pay SOMETHING (what would be normal for a realistic purchase). Once the house is mine, get a Home Equity Loan for the Purchase amount. The interest would be ~ 1/2.... so.... win /win! KillJoy Uh, wat? With an equity line, you are typically allowed to borrower up to 80% of the value of the home. These are also usually ARM's with a balloon payment and the rates are not as good as a fixed rate mortgage. Why are you assuming a HELOC's rate will be half of a conventional fixed mortgage? -Marc Quote Link to comment Share on other sites More sharing options...
KillJoy Posted March 23, 2012 Author Report Share Posted March 23, 2012 Why are you assuming a HELOC's rate will be half of a conventional fixed mortgage? -Marc Current rates I have seen? 30 yr fixed @ ~ 4-5 15 - 20 yr Eq Line @ ~ 2 KillJoy Quote Link to comment Share on other sites More sharing options...
KillJoy Posted March 23, 2012 Author Report Share Posted March 23, 2012 Uh, wat? With an equity line, you are typically allowed to borrower up to 80% of the value of the home. These are also usually ARM's with a balloon payment and the rates are not as good as a fixed rate mortgage. Why are you assuming a HELOC's rate will be half of a conventional fixed mortgage? -Marc Also, this is why I am asking. If it looks promising that this is doable, I will be contacting "someone" for assistance getting it done. KillJoy Quote Link to comment Share on other sites More sharing options...
AngryBMW Posted March 23, 2012 Report Share Posted March 23, 2012 Also, this is why I am asking. If it looks promising that this is doable, I will be contacting "someone" for assistance getting it done. KillJoy Gotcha. -Marc Quote Link to comment Share on other sites More sharing options...
Dr. Pomade Posted March 23, 2012 Report Share Posted March 23, 2012 I'll give you $142 right now, sight unseen. Quote Link to comment Share on other sites More sharing options...
FourString Posted March 23, 2012 Report Share Posted March 23, 2012 $143 Quote Link to comment Share on other sites More sharing options...
Dr. Pomade Posted March 23, 2012 Report Share Posted March 23, 2012 :fuuuu: Quote Link to comment Share on other sites More sharing options...
FourString Posted March 23, 2012 Report Share Posted March 23, 2012 :gabe: Quote Link to comment Share on other sites More sharing options...
99FLHRCI Posted March 26, 2012 Report Share Posted March 26, 2012 $144 :fuckyeah: Quote Link to comment Share on other sites More sharing options...
caseyctsv Posted March 26, 2012 Report Share Posted March 26, 2012 Rates have never been this low, IMO get a fixed rate 15 year or 30 year. Do not mess with an Arm. There is no advantage I can see doing the transaction this way. Quote Link to comment Share on other sites More sharing options...
AngryBMW Posted March 26, 2012 Report Share Posted March 26, 2012 Rates have never been this low, IMO get a fixed rate 15 year or 30 year. Do not mess with an Arm. There is no advantage I can see doing the transaction this way. Troof. -Marc Quote Link to comment Share on other sites More sharing options...
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