Why does my dad want to buy my house?
There will only be a “can of worms” if the money is not legitimate and has been obtained by your parent (s) illegally. … my dad thought he could give us the money in the form of an investment but that he has no intention of receiving any return from nor expects us to ever sell the house further down the line and cash in his investment so to speak.
Can a father sell the property in his hand?
Yes he can. The property in his hand is an absolute property through WILL and not by inheritance. It came to your father through a testamentary instrument – Will. Therefore it became an absolute property.
What happens if my parents sell their house for under market value?
If your parents plan to sell their house to you for under market value, they will essentially gift the rest of the property to you. For example, if your parents’ house is worth £200,000 and they sell it to you for £150,000, this means they are gifting you £50,000.
Why does my dad want to give me money?
… my dad thought he could give us the money in the form of an investment but that he has no intention of receiving any return from nor expects us to ever sell the house further down the line and cash in his investment so to speak. He just wants to give us £60,000 but without paying any tax on it or incurring any costs.
Is it possible for my dad to sell his house?
No probate and no problems from relatives since he had transferred the house while he was alive. It can be done easily enough but you need to consult a lawyer and possibly a CPA for the tax stuff down the line. I did this with an uncle some years back (1997) he was getting senile and had step kids from his widower that only showed up for money.
What happens when my father gives me a house?
For example, it’s a gift if you receive a right to live in the house that reverts to your father or someone else he names when you move or die. Gift tax is combined with estate tax in the same tax code section. Your father is taxed on the combination of gifts during his lifetime and property left to heirs after his death.
Why do I have to give away my house when I sell it?
The reason is that when you give away your property, the tax basis (or the original cost) of the property for the giver becomes the tax basis for the recipient. For example, suppose you bought the house years ago for $150,000 and it is now worth $350,000.
Can a father gift a house without paying tax?
It is adjusted each year for the cost-of-living. No gift tax is owed if your father gives a house with less value than the annual exclusion. By gifting only partial ownership in a house over several years, your father can remain below the annual exclusion from gift tax. This requires him to give you a percentage of ownership each year.