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URL:  http://boards.fool.com/capital-gaines-on-sale-of-house-15890891.aspx

Subject:  Capital Gaines on sale of house Date:  10/9/2001  11:32 AM
Author:  jcopenhaver Number:  54474 of 121565


I'm selling my house of the past 12 years and have a strange question.

The buyer is using some creative financing to purchase the house. Evidently they don't have enough money for a down payment and want me to raise the price of the house to cover their down payment and closing costs. Then, at closing, they want me to give them a "gift" of their down payment. By the time the I's are dotted and the T's are crossed, I will end up with my original purchase price at closing.

It sounds ok to me, but I wonder about the capital gains taxes that may be due. I'm purchasing another home before the sale of this house completes (a more expensive home). I want to make sure that I'm not going to get left holding the bag on the capital gains for the "gift".

Does this make any sense? Am I worried over nothing?

Thanks-

Jim C.


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