Selling to relative

[Account Closed]

Hi all!

I bought my first home in 2010 and lived in it for two years before I purchased my new home. It is currently a rental with a great tenant. I am considering selling this property soon so I can avoid capital gains tax.

I told my mom my plans and she wants to buy it as soon as her deal is done with her multi-unit complex.

My question is how can we do this without an agent? The house was bought in cash and my mom's name is under mines on the grant deed. What is the best way to go upon this situation?

I would be using the money to put down on a new home.

[Bill Exeter]

Buying from a related party will generally not work. In your case, because it is your primary residence and you will likely pay no taxes under Section 121 (121 Exclusion), your mother's 1031 Exchange into your property will likely not qualify. I would be happy to provide citations, if you need them.