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Financial Planning / Tax Strategies
|Subject: Capital Gaines on sale of house||Date: 10/9/2001 11:32 AM|
|Author: jcopenhaver||Number: 54474 of 119697|
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?
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