Posted by Scott on October 13, 2003 at 14:11:55:
No subject to, just a simple sale to buyer with buyer’s own funds/loan and transfer of title. No rent even. Just “I changed my mind and want to buy it back for the same price I sold it for plus your costs”. Only complicating factor may be that buyer and seller are cohabitating at the subject property address, but are not married or related.
Exclude Capital Gains then Buy It Back? - Posted by Scott
Posted by Scott on October 12, 2003 at 24:31:10:
Is it possible to sell your primary residence to someone, take the $250,000 exclusion, then buy it back from that person for the same price you sold it a month or two later thus establishing a new basis? How about a day later? Are there any restrictions on how soon?
Thanks
Re: Exclude Capital Gains then Buy It Back? - Posted by William Bronchick
Posted by William Bronchick on October 13, 2003 at 12:14:53:
I’m going to do something few attorneys do and say - “I’m not sure!”
That’s a very interesting idea, but I can imagine the IRS challenging it as a sham-sale if the buyer took it subject-to, then sold it back. If the buyer used his own funds and you had a valid sale, paid rent to the buyer, then bought it back a few months later, I couldn’t see a basis for a challenge. Of course, there would be costs incurred in closing, the buyer getting new funds, etc, but it may be worth it in the long run.