Posted by Ed Copp (OH) on March 17, 2001 at 19:21:22:
Buy the house and both lots from her. Have her take back a note, or buy on contract. She can then take her one time deduction.
Let her stay as long as she likes, this might make her happy, and she would like you. Hopefully she would like to have you just make payments to her, with no down payment and no credit check needed.
On second thought, why not just send me her name and address (by private e-mail), and I could just stop by and talk with her.
I am pretty new to most of these concepts but am in need of some help. Here is the scenario:
An older woman lives in an older home, she also owns the lot next door. She is 95 and has lived there for many years.
I want to buy the lot and build a spec home on it (and I wouldnt mind getting the existing home also).
I asked her if I could buy the lot from her and she said she would definitely sell it BUT (her words) because it does not have a house on it - she would not be able to take her “one time” tax (capital gains) exemption/deduction and would need to sell the existing house WITH the lot to take the exemption… (as a side note, she is moving into a retirement home in the next year and will be selling both anyway).
This is a very hot community and buildable lots are very rare -AND- if an agent gets to her, it will be top dollar (that would eliminate me from the competition with builders with much more capital).
My questions:
Regarding the exemption, I know this was the way it used to work but is that still the case? It thought the laws had changed with regard to the one time exemption.
What would you suggest for making this situation work (i.e.- new laws re exemptions or purchasing now and letting her live there until she moves???)
Thank you very much for any advice - I am in desperate need of advice in this situation. Would like to take a clear, concise offer to her which could be a win win for both.