Message Font: Serif | Sans-Serif
No. of Recommendations: 0
"Just because taxable income is different doesn't mean that the CPA doesn't know what he is doing."

Update: here's what he's telling us now. The Estate is selling the house to the one sibling and then the estate is passing on the sale funds to the other two siblings. Thus they can take a loss on the sale of the house even though it is being sold to a relation.

I could be wrong, but I just get a gut feeling this guy is shooting from the hip just to help his client (the sibling being sold the house). The sibling is selling it to his brother and sister at a certain price and part of his pricing of the house is convincing his brother and sister that it's better than it sounds because they can take a big loss.

But if the ESTATE is selling the house, then why would they get to take a loss at all since THEY are not selling the house? Is the Estate passing the loss through?

Also, the CPA has "valued" the house at a price that we think is terribly inflated. I put "valued" in quotes because I suspect another seat of the pants shenanigans and not an actual appraiser. They supposedly have a document of some kind, which I'm going to insist on seeing. Does it HAVE to be from an appraiser, or are other methods allowable?

I'll call the CPA on Monday and talk to him directly.

Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.