Home Purchase Question

**DLM** · 08-05-2011, 01:26 PM

Hi Guys and Gals,

I have a question that I cannot seem to find an answer to. Basically my Aunt and Uncle have two homes that I will be aquiring. We are trying to determine that best way to do this and get the Deeds in my name, with the least amount of taxes or fee's paid.

Heres the concern. The Homes are worth apx. $5k each (based on estimates from the property appraisers office and is probably pretty close to being right) and the land is estimated to be worth apx. $47k. So basically they will be giving me the homes for roughly $15k each, but we are concerned that the IRS may flag it as being sold to cheap and trigger an audit or something.

So heres the questions.

1. Will the IRS flag this transaction or will they not even worry about it?
2. Are property sales such as this normally estimated bases on Fair Market Value or home value?
3. Would it be a good idea for them to give me the homes as a gift for $13k each or would this maybe raise some flags as well?

Any information would be greatly appreciated. The do not live in the homes anymore and they will eventually be knocked down, so it's really the land that I am looking to get in the long run.

**Greg** · 08-07-2011, 07:49 AM

You need to run this by a good tax accountant.

If they give the houses to you then you have to pay a gift tax which can be quite high.

Don' try to figure fair market value by using the property appraisers office. Those numbers are for tax assessing and usually don't reflect fair market value. Pay for an appraisal.

**tmhayes95** · 08-11-2011, 04:04 PM

Have a Realtor give you a Compartive Market Analysis on the home. They should do it for free. Ask a Real Estate Attorney about the best method for acquiring the property and how to have it deeded to you.