Creative Purchasing Question to Avoid Capital Gains Tax

[Michael Cabaña]

Good morning BP!

My wife and I would like to purchase my uncle's house in San Jose, CA. Is there a way we can purchase the house and he avoid paying the 40% capital gains tax? I would love to read some of your experiences and ideas. 

Thank you.

[Houston Garcia]

@Michael Cabaña - I highly recommend reaching out to a professional CPA or accountant. There’s a lot of red flags potentially raised with the IRS if it’s a non-arms length transaction - especially if it’s “too good” of a deal.