Assuming a mortgage from family/capital gains - Posted by Christine
Posted by Christine on May 09, 2000 at 10:48:34:
I have rented (paid the mortgage) on my mother-in-laws home for 12 years. We had talked about assuming the loan, just to sell it in order to buy a new home with any profit as a downpayment. At first, my inlaw agreed for us to assume, with no money down, except for the assumption fees…since my husband and I always did the upkeep. Later, we decided it was an uneccesary step, and that we could just sell it in their name, and that they would just give us any profit to go toward our new home. Now, they are telling us their is an almost 10,000 dollar capital gain???tax, which they want US to pay, or take out of the profit. Unfortunately, the house needs some foundation work and I do not thing that the profit would exceed 10,000 by much if at all. If I still assume, do IIII owe the previous capital gain when I sell? Is there a way for THEM to get out of the capital gain tax or reduce it? I am upset, as I have put money into the house myself, but it is not in my name and now with this tax, I may not come out ahead, to be able to put a down payment on a new house. Any advice? should I assume…or walk away?