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capital gains

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What is the name of your state? Georgia
I bought half interest in a piece of land. all documents read for one dollar and other valuable considerations. then I transfered some mutual funds to the sellers account. now if i say I gilfed him the mutual funds at the price I purchased them( the mutual funds) at can I avoid the capitol gains and then when he sells them if ever he will pay on that basis?
 


efflandt

Senior Member
Whose convoluted idea was this? If you pay for the land, when you sell your share, you would owe capital gains tax on the difference between sale price and cost basis (purchase price and inprovements).

If you are on record as buying it for $1 and gift the rest (which would be value of mutual funds when transferred, not when you bought them), your cost basis would be $1. Your capital gain when you sell will be your sale price minus $1. So eventually you would effectively pay capital gains tax on that gift (capital gains that the other party should be responsible for). Why do you want to pay the seller's tax for them?
 

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