What is the name of your state? Wisconsin
In 1997 we purchased a piece of waterfront property from my wife's parents. The conditions were that we would grant them an unrestricted use easement to use a 60' strip of the property that contained the dock and boat house. (They live only about 200 yards from the property) The agreement was that if they were ever going to sell that we would get the first chance to buy that easement from them instead of them including it into the sale of there home. The easement was written up to show that it was perpetual and would go with their property unless we bought it. The assessed value of the easement section is 64K. We want to buy that easement back because they are selling their home. They were told that now they would have to pay capital gains tax on that easement that we are going to buy because it is not included in the sale of their home which would be exempt from capital gains.
Is there a way around this, could a gift apply somehow. Can they gift it to us and then we gift money back to them? Please advise.
In 1997 we purchased a piece of waterfront property from my wife's parents. The conditions were that we would grant them an unrestricted use easement to use a 60' strip of the property that contained the dock and boat house. (They live only about 200 yards from the property) The agreement was that if they were ever going to sell that we would get the first chance to buy that easement from them instead of them including it into the sale of there home. The easement was written up to show that it was perpetual and would go with their property unless we bought it. The assessed value of the easement section is 64K. We want to buy that easement back because they are selling their home. They were told that now they would have to pay capital gains tax on that easement that we are going to buy because it is not included in the sale of their home which would be exempt from capital gains.
Is there a way around this, could a gift apply somehow. Can they gift it to us and then we gift money back to them? Please advise.