| Buyer wants cash over selling price
What is the name of your state? California
We are selling our rental-home to our tennants. We have settled on a price, lower than market price, as we are not using a real estate agent. Our tennants (buyers), on advice from their lender, would like us to raise the selling price of the home by $40,000 and "gift" them the extra money to help with the down-payment. The house will still appraise for the $40,000 over the original price. All money exchanges will be handled in escrow. My Question: What are the tax implications to us, the sellers, since the selling price has been raised $40,000? It appears that we have received an extra $40,000 profit that we have to declare as Capital Gains, but can we use "gifting" to negate the extra taxes we'd have to pay. We are not actually receiving an extra $40,000. Thank you for your help!!! | 
11-02-2002, 03:16 PM
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