Dad to son house sale
my dad wants to sell me his house for $198,000 what he owes on his loan. The property is worth $350,00. My parents can't make the payments no more, what's the rules in regulation of taxes for my parents? Everything is up to date like mortgages and taxes I been helping them with the mortgage. I just bought a house 6 months ago on FHA ?
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Do your parents also want to continue living there after he sells it to you, or do your parents plan on moving somewhere else? It seems like they have pretty good equity in the property so I don't see why they would have a problem selling it, whether to you or someone else.
I don't really see any tax issues with what you're describing considering they wouldn't really be getting any profit or capital gain from selling the property for the mortgage value. Even if they sell it for full value, they would be under the $500,000 capital gains exclusion for married couples as long as they have been there for at least 2 years so there really wouldn't be any tax hit on that either. Can you provide any additional info as to their intentions with selling to you as opposed to someone else?