Posted by dutch on May 09, 2006 at 13:16:09:
I’m no lawyer or cpa, but my guess it that it would be best if they sold it to you. Then it would be their choice as to whether they actually collect the payments.
Regardless, there are tax implications for both sides.
Good luck. Let us know how it shakes out.
Dutch
OKHomesavers
Help Question - Posted by David
Posted by David on May 09, 2006 at 07:01:09:
Parents want to give me a house.What is best way,to give or to buy for like $100 or something else?
Re: Help Question - Posted by dealmaker
Posted by dealmaker on May 09, 2006 at 08:06:04:
If your parents are “elderly”, say over the age of 75-80, and the house is worth a pretty good amount, it would be foolish to give it now. When they pass on you would receive a “stepped up” value.
Dutch’s idea about the cpa is essential. Gifting $12K (I think that’s the new limit) per year is probably the best way.
dealmaker
Re: Help Question - Posted by dutch
Posted by dutch on May 09, 2006 at 07:51:57:
The IRS will hammer you. What is it’s value? parents can give something like 10 or 12K a year tax free to each kid.
You need a CPA.
Dutch
OKHomesavers
Re: Help Question - Posted by BTI
Posted by BTI on May 11, 2006 at 23:46:39:
Just a reminder, each parent can give the exempt amount.
Re: Help Question - Posted by David
Posted by David on May 09, 2006 at 10:43:15:
The house is only $65,000.My parents moved to their farm and can’t keep it.They are both 60.They want me to have the house because I am in the same city.Also,they have a lot of medical bills and want me to have it before it is possibly taken away.The appraisal is after repairs.It’s going to be about 20-25,000 to rehab it.It has been vacant for a year.I don’t know the best way to get the house.I am in the process of getting an attorney but would appreciate any help to hurry things up.