Help With Gift of Equity (sales, loan, how much)

[elwood602]

I am currently buying a house from my family. The purchase price of the house is 400,000$. The actual loan amount is for 270,000$ (which is the price agreed upon by the four family members as the sale price to me). That leaves a gift of equity at 130,000$. Now my question is that, can all four family members gift me the tax free 11,000$ allowed by IRS? Second, how much tax would be placed on the remaining amount of the gift? Third how much tax would be placed on the 270,000$? With all this in mind is it even taxable because it is inheritance and not over 1,000,000$?

[SMG]

if it were me, I would seek a professional out to answer these questions. There are some things that are good to get info on from a forum, but this is a pretty substantial amount of money.

[Stumblina]

Don't mess with the IRS . . . contact a good estate planning attorney (NOT an accountant).

[Bummer]

I'm a little confused, elwood . . .

Why not simply establish the purchase price at $270,000 and then the $130,00 is a "non-issue" as far as the IRS would be concerned.

Otherwise, I agree with SMG and Stumblina . . . you need professional advice!

[Greatday]

Sounds to me like professional tax advisor is in order

[FunkyPioneer]

Originally Posted by elwood602

I am currently buying a house from my family. The purchase price of the house is 400,000$. The actual loan amount is for 270,000$ (which is the price agreed upon by the four family members as the sale price to me). That leaves a gift of equity at 130,000$. Now my question is that, can all four family members gift me the tax free 11,000$ allowed by IRS? Second, how much tax would be placed on the remaining amount of the gift? Third how much tax would be placed on the 270,000$? With all this in mind is it even taxable because it is inheritance and not over 1,000,000$?

LOL with the way prices are dropping in Az I wouldn't worry about the equity, it will be gone soon enough.

[Bummer]

Originally Posted by FunkyPioneer

LOL with the way prices are dropping in Az I wouldn't worry about the equity, it will be gone soon enough.

LMBO @ Funky!

Not quite the answer requested but . . . GOOD ONE!

[Nice Nice Baby!]

A sales price can be determined at any price whether it's a family member or not. Heck, I can buy it for $270,000 if you let me. Price is negotiable so my guess is it isn't an issue, but like others have said, check it out for yourself with a qualified professional.