Couldn’t the seller just sign over the house to the buyer and buyer wires seller whatever number they agree upon?
Or seller sells house way under market value? And buyer wires them the rest?
lol I get both are probably not legal. But I’m sure it happens?
Buying house from family member, is there a way to help them with capital gains tax?
byu/Helpful-Finish-6561 inRealEstate
Posted by Helpful-Finish-6561
3 Comments
Nah this is basically asking how to commit tax fraud lol. The IRS isn’t stupid – they know what houses in your area sell for and if you “sell” a 500k house for 50k they’re gonna have questions. Plus if you get audited you’re absolutely screwed since there’s a paper trail of you wiring the difference
Just pay the damn taxes or talk to a CPA about legal ways to minimize them
if they have lived in the house for at least 2 years, the first 250k (500 if married) is tax free anyway.
Even if you trust the family member, lenders, title companies, and the IRS are all involved. Someone will notice numbers that don’t add up