Posted by Brent_IL on January 23, 2001 at 21:39:42:
Not okay. You are the one that is going to pay capital gains on $135,000 (210-75). In order for the seller not to pay taxes on the $105,000, he would have to borrow it from you using your loan proceeds. His unsecured loan could never be called. Skilled tax attorneys would pass on this approach. Too much collusion.
It might be hard to find a lender that would lend $165,000 (60+105) on a property that sold for $75,000 the week before. Even if this is a what-if scenario, taxes of $27,000 (135 x .20) will kill any profit. Forget it.