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URL:  http://boards.fool.com/buy-sisters-residence-leaseback-14069206.aspx

Subject:  buy sister's residence & leaseback Date:  1/9/2001  1:46 PM
Author:  honeydog Number:  44087 of 121185

She is 68 yrs old, only income social security. House with no mortgage has been her principal residence for 25 months. She sells to me, holding 30 yr, 8% mortgage, for $ 100,000+ gain without tax on such gain. I leaseback to her for lease pymts substantially less then total of my depreciation, improvements, taxes, mortgage interest. etc. resulting in annual loss on rental investment. 8+ years later, I sell back to her at price which, after recapture of my depreciation, results in small gain.

Or, instead of selling back to her, I terminate lease and I move in as my principal residence for 2+ years, then sell to unrelated party for substantial untaxed gain.
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