Please Please Help, Purchasing Lot and Home - Posted by John
Posted by John on March 17, 2001 at 18:45:56:
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).
- 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.
Thanks for any suggestions.