Friend inherits house from his parent and wants to sell it to his daughter at a below market price his daughter can afford. What’s the smartest way for him to do this? He just inherited it so his basis is the market value. Say market value of 500K. Say his daughter could afford 300K at current interest rates. Is the amount below market price he sells it to her for considered a gift?
The house has had homestead exemption in FL so I do not think it is avoidable for the tax assessment / property taxes to go up. What would her basis be if she bought it below market value?
Any other considerations? I guess he could rent it to his daughter until he dies so she could have a stepped up basis. He could live 30 years though.
Thanks for your perspective.
The house has had homestead exemption in FL so I do not think it is avoidable for the tax assessment / property taxes to go up. What would her basis be if she bought it below market value?
Any other considerations? I guess he could rent it to his daughter until he dies so she could have a stepped up basis. He could live 30 years though.
Thanks for your perspective.
Statistics: Posted by Parkinglotracer — Wed Jun 19, 2024 10:14 pm — Replies 0 — Views 56