All Forum Posts by: Jill McCann

 Thank you!

We've had so much trouble finding the right professional to help us with this. We've talked to about 10 different people--real estate attorneys, CPAs, etc. and each refers us to someone else so it's been frustrating. 

Good problem to have except they are terrible with money, have never had money, and I'm trying to help them and no one seems to be able to tell us what to do. 

We may just have to suck it up and pay capital gains but that is a lot of money and I'm having a hard time reconciling that. So, came here to see if there are other options we haven't yet considered. 

Thank you!

 Could the transaction be broken down to :

Sale of property 

Buyer "gift" the remaining funds to cover the sale price if under lifetime max? 

Is that legal/allowed?

 Ok--So the VALUE hasn't changed very much according to real estate assessment but the accepted offer and sale price is significantly higher than when they inherited. 

We are open to them misaligning the proportions to help with taxes. However, the difference in inherited value and sale price is many times higher than 250k. 

Yes gain is significantly more than that. 

Uncle is unmarried (widowed).

It's rural and they never did title or deed transfer. Just transferred upon death via will and probate has been closed.

I'll look into tax free section 121 and gifting! 

We are VERY happy to pay a tax person--just having trouble finding one that can help. 

 They've owned it for 10 years. The sale needs to happen this fall.Not sure they've ever considered it investment. Considering an installment? Not sure how to structure. Maybe we are overcomplicating..

 Thank you! I'm not sure they qualify for a 1031, which is the problem. My mom has done both of their taxes forever via turbo tax and isn't sure she ever considered it investment in any way. 

My mom and uncle inherited family property when my grandmother died 10 years ago. 

My uncle has lived on the land his whole life including after inheriting--it's his primary residence. 

The land is comprised of a few homes, barns, forest, and farmland. They have collected some income for having it logged years ago but that's about it.

They have accepted an offer on it and will be subject to significant capital gains. The offer is cash and from family so the deal can be structured a variety of ways. 

1. What are the best strategies to minimize taxes?

2. Is there a way to allow both parties to net the same amount of money after taxes considering my uncle will be able to reduce his liability due to it being his primary residence. 

Of note--one small piece of the whole sale is owned solely by my uncle and contains a house and about an acre of farmland. I mention this in case using it provides some option for tax savings. The offer is on all of the property together and the agreement is to split it all. Thank you!!

 I don't want to sell because I want to keep the property. I love it there and want it as a vacation home if nothing else. 

Rates I'm getting are 6% and up. Current rate is 2%. 

He will take me to court over it--a matter of time as he's not stopped bringing motions despite the hundreds of thousands of dollars it's costing him/us.

I think my best option is to pay off the loan in cash.  Just crowdsourcing and seeing what else is out there. 

Thank you!

So I understand why you made the assumptions you did, let me clarify:

I qualified for the refinance on the other two properties in March 2022--interest rates were a lot lower then. I also receive support for 3 years, which is the minimum you need to qualify for loans. It's now September and interest rates are a lot higher and I now have less than 3 years of support. The payment will increase due to interest rate, although I guess I could pay cash towards principle to get payment to where it needs to be. Either way none of my contacts could do anything in WV and my support is now less than 3 years and I don't yet have w2 income. 

My agreement says I have to refinance or otherwise get him off the loan. I can pay cash. Just considering other options 

I'm getting a divorce and acquired our property at settlement. I've refinanced my main house and an investment property and am out of ratio for refinancing the last property. I've contacted the lender to request a simple assumption of the loan as interest rate is very low, but that's unlikely.

The home is in WV and pay off amount is 116k and value is 200k.

I have the cash to pay off the loan. However, I'd prefer a mortgage so that I could use that money for other investments/deals but have nothing specific lined up. We bought the home as a vacation home, but I've converted to a STR and have data showing income for the property.

I do not have W2 income right now, so that limits my options. 

I need help processing what to do:

1. Pay off loan and get a HELOC or similar if I want to tap equity in the future--is this a possibility? Difficult?

2. Attempt to find a DCSR loan--if this route, how do I find someone in WV?

3. Anything else I should consider?