scclark9

[scclark9]

consideration

what is consideration on a deed? My husband and I bought back an interest in our property for $1.00. The deed list the considerstion at $99,500.00. Does this mean I owe capital gains tax. We paid capital gains on the original40,000.00 investment. I am confused.

Thanks
scclark9

 

[tranquility]

See a tax professional as your facts get muddier and muddier. What happened is necessary before you ask questions like this as the answer will not clarify things for you. But, since I've already written, consideration is the value transferred (i.e. money actually paid) and not what was said was transferred.

 

[davew128]

Methinks there is a lot more going on here than our OP is admitting as the relevant questions being asked by her are a lot more unrelated and complex compared to the original post.

 

[LdiJ]

Methinks there is a lot more going on here than our OP is admitting as the relevant questions being asked by her are a lot more unrelated and complex compared to the original post.

That's obvious, which is why the OP needs to consult a tax professional and lay out all the paperwork on the table.

I think I mentioned previously that I am currently going through an audit with a client who did lots of wierd and convoluted things in an attempt to protect himself financially, that have majorly muddied the waters taxwise, and he had no concept that he needed to consider tax implications when doing those things.

Luckily, as things are panning out, and we (including the auditor) dig deeper, its looking like the IRS may actually owe him money rather than the reverse, but it could have easily been the opposite.

People need to consider the tax implications of what they are doing BEFORE they do it.