shenson2000
Junior Member
Hello,
Last year I moved my parents out of their old house because it was in such a state of disrepair. I bought a house, in my name, for them to live in. Something had to be done about the old house, so I began fixing it up so it could be sold. I've put about $40k into fixing the house up. My parents would like to sell the house to me for their payoff amount (about $45k) and then I could sell the house myself. I am concerned about having to pay too much capital gains tax if I do this. I could probably sell the house for $140k once I finish repairs. Since I've put money into the house, I wouldn't want to pay capital gains on the delta between what I pay them ($45K) and a sales price of $140k because that wouldn't accurately reflect my costs. Any suggestions?
What is the name of your state (only U.S. law)? I live in Washington, the house in question is in Oregon.
Last year I moved my parents out of their old house because it was in such a state of disrepair. I bought a house, in my name, for them to live in. Something had to be done about the old house, so I began fixing it up so it could be sold. I've put about $40k into fixing the house up. My parents would like to sell the house to me for their payoff amount (about $45k) and then I could sell the house myself. I am concerned about having to pay too much capital gains tax if I do this. I could probably sell the house for $140k once I finish repairs. Since I've put money into the house, I wouldn't want to pay capital gains on the delta between what I pay them ($45K) and a sales price of $140k because that wouldn't accurately reflect my costs. Any suggestions?
What is the name of your state (only U.S. law)? I live in Washington, the house in question is in Oregon.