Had I not scrutinized the details, I would have unknowingly paid more than I had agreed to.This experience was costly and frustrating, and I urge all potential borrowers to ask for a full breakdown of all fees and interest components before committing to any loan.

While gifts exceeding $18K per year (2024) require filing Form 709, they don't create an immediate tax, but the IRS may scrutinize this as tax avoidance.Tax-Saving Alternatives:Prorated Section 121 Exclusion – If you lived in the home part-time, you may qualify for partial tax exemption.1031 Exchange – If your share was an investment property, reinvesting the proceeds defers capital gains.Installment Sale – Spreading payments over time may reduce your tax bracket.Adjusted Basis Review – Factor in capital improvements and selling costs to lower taxable gains.This post does not create a CPA-Client relationship.

The IRS could apply this doctrine if it appears that the series of transactions are structured primarily to achieve a specific tax outcome, such as avoiding taxes.Regarding the 1031 exchange, while in-laws are not considered related parties, the transaction could still be scrutinized due to the complexity and nature of the other transactions involved.

.- Individual 1031 Exchanges: Each partner can then independently conduct a 1031 exchange with their share, deferring capital gains taxes by reinvesting in like-kind properties.Considerations:- Timing: The IRS may scrutinize transactions where the "drop" (distribution) and "swap" (exchange) occur in quick succession.

Imagine if you scrutinized yourself instead of spending so much time trying to justify your struggles by placing the blame on others.

•Document everything – Ensure the transaction is structured at fair market value, with no special benefits to any family members.Bottom LineIt may be possible, but because of the family connection, the IRS could scrutinize the exchange.

Just make sure to scrutinize it for any underreported items or inconsistencies.- Set Conservative Estimates: For CapEx, maintenance, and make-ready costs, consider building in a buffer to account for unexpected expenses.

On the other hand, lots of the sellers are institutional investors or local RE professionals, which inevitably shifts even more risks to newbie buyers.This is a 1-star review for newbie buyers; 3-star review for seasoned buyers who know what to watch out for when evaluating deals; 5-star review for sellers, especially those who want to evade scrutinization from shrewd local brokers and failure-to-disclose-property-defects lawsuits.Well, since I rate Roofstock 5 stars for sellers, why don’t I just list it for sale on Roofstock?

I mean there is so much to scrutinize here we could spend an entire afternoon reviewing the actual deal let alone the financing.I wish you luck either way man.  

I think this approach ensures that every aspect of the chosen location is carefully scrutinized, helping investors make informed decisions.