Naas, Kildare · Member since 2015 · 18 posts · 0 votes
Hey there,
Say I have a property worth $100k. I want to sell it to a relative/friend/anyone for $50k. Will either I (seller) or the new owner (buyer) incur any taxes/penalties? In an ideal world, I feel like I should be able to sell something I own for whatever I want to but I know Uncle Sam tends to think differently at times.
@Robert Lee While I don't know the specifics of your situation, and I have no idea what state Naas, Kildare is in, most states simply have you fill out an affidavit of how much you sold it for, not how much it is worth. Few of us are appraisers so we are not qualified to prove or disprove value and the government knows that. So, the real answer is, it is not likely anyone will care. Now, if you are selling a $100,000,000 property for $50,000,000 and claiming a loss on the sale, the IRS may want some documentation. ;-)
I think that's called and arms length sale. As far as I know the IRS and lenders are not to keen on arms length deal. But I'm a noobie so don't take my word for it.