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hi,
if person A and B are planning on purchasing a 400k house with Cash, and in order to take advantage of the 8k government assistance (they're not first time buyers), is it possible to have their daughter/son buy the house (put their name on the title) but pay the title company in cash (the parents)?
sorry about the long sentence....but you get my point right?
You totally can and legally do so. However, the idea would end up a bigger tax bite than you like.
I am not an accountant or lawyer. My advice is always stupid. So read on if you like.
If you give the money to your daughter, you basically gift your daughter $400,000. Take a guess on the tax on gift.
A proper way to do this is to loan the money to your daughter and have her pay you back at 0% interest. If you draft up proper document and have a lawyer looked it over, I don't see any reason this is not legal.
If you have watched the news they are investiagting over 100,000 rebates for fraud.
Darn! My dumb dumb new accountant told me that I would be eligible for this tax break in the new tax year
(even though I know that married to a previous home buyer... I have been exempted from this tax credit).
I was going to let my accountant file my claim and "see what happens" you never know there maybe some loop hole I was not aware of.
But now, I know I better not even chance it. I would be one of the ones to get audited for sure.
Sure ticks me off that all this incentive $$ floating around and I can't seem to get any of it.
I buy a good mpg car so I can't get the clunkers for cash deal, I am a new home owner although married to a previous home buyer so I miss that as well. I have new house so there is no energy saving improvements to do....
First I agree with grannynancy. Secondly if you buy the house and give it to your kids I think they would have to claim the $400K as income and would pay more than $8000 in taxes on that amount.
Location: Sometimes Maryland, sometimes NoVA. Depends on the day of the week
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You know, he isn't even planning on buying the house FOR the kids, he wants to buy the house and use the kids for the tax credit
There is someone on the real estate subforum who wants to claim he isn't a homeowner b/c he paid his house off 8 years ago. So, you know, he qualifying for the first time home buyers credit to buy a second home, cause he hasn't had a mortgage.
Quote:
I buy a good mpg car so I can't get the clunkers for cash deal, I am a new home owner although married to a previous home buyer so I miss that as well. I have new house so there is no energy saving improvements to do....
Consider yourself lucky, be glad for what you have
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