What is the name of your state? Ohio
My wife's grandma recently passed away. She owed $80,000 on a house that was appraised at $119,000. My mother-in-law and aunt are the executor's of the estate. We agreed on a purchase price of $90,000 ($80,000 for the deed and $10,000 to pay for funeral and expenses occured). Our mortgage loan officer is writing up a purchase price of $108,000. This is for the $90,000 owed to the estate and then $18,000 which he said can be gifted back to us from the estate to make major repairs(new siding, new windows, new flooring, etc...) My question is: Will either the estate or us incur any taxes on the extra $18,000? Will we have to claim this as income? Please advise. Thanks. This will be our first home purchase and our only residence. (not a rental property or second home)
My wife's grandma recently passed away. She owed $80,000 on a house that was appraised at $119,000. My mother-in-law and aunt are the executor's of the estate. We agreed on a purchase price of $90,000 ($80,000 for the deed and $10,000 to pay for funeral and expenses occured). Our mortgage loan officer is writing up a purchase price of $108,000. This is for the $90,000 owed to the estate and then $18,000 which he said can be gifted back to us from the estate to make major repairs(new siding, new windows, new flooring, etc...) My question is: Will either the estate or us incur any taxes on the extra $18,000? Will we have to claim this as income? Please advise. Thanks. This will be our first home purchase and our only residence. (not a rental property or second home)