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Author: jcopenhaver One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121335  
Subject: Capital Gaines on sale of house Date: 10/9/2001 11:32 AM
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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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