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| Re: Vehicle Registration (913560) | |||
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Re: Vehicle Registration |
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Posted by RIPTA42HopeTunnel on Mon Feb 27 13:58:06 2012, in response to Re: Vehicle Registration, posted by LuchAAA on Mon Feb 27 12:32:40 2012. Believe it or not, people will sell their home to their kids for $1.The problem for the kids is that when they sell the home, they have to claim cap gains based on sale price - $1. So if someone bought a home in Middle Village Queens for $175k in 1983 and it's worth $900k in 2013 they can sell it to their only child for $1. When the kid eventually sells the home, let's say when it's worth $1 million, his cap gains will be $999,999. No, if someone sells property for far below market value, the balance is considered a gift. The buyer/donee would later pay tax on the capital gains over the adjusted cost basis at the time of sale ($100,000 in your scenario), minus any improvements made after that date. |
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