What is the name of your state (only U.S. law)? California
I'm relocating to Southern California from Northern California. I currently own the home I live in and we plan on keeping it as a second home. My father is retiring and moving out of his house to a smaller home. We are planning on purchasing his house for our relocation.
The purchase will be below market value, basically covering the remainder of what is left of the loan on the house. What tax implications does this have down the road vs having him quitclaim it me and just refinancing? Are these similar situations in regards to taxes owed? If we get an appraisal now, is this the value that is considered for taxes owed?
Purchase price would be around $300,000----fair market value is around $500,000.
I'm relocating to Southern California from Northern California. I currently own the home I live in and we plan on keeping it as a second home. My father is retiring and moving out of his house to a smaller home. We are planning on purchasing his house for our relocation.
The purchase will be below market value, basically covering the remainder of what is left of the loan on the house. What tax implications does this have down the road vs having him quitclaim it me and just refinancing? Are these similar situations in regards to taxes owed? If we get an appraisal now, is this the value that is considered for taxes owed?
Purchase price would be around $300,000----fair market value is around $500,000.
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