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Originally Posted by Tree0164
That sounds like a great deal. I am not sure of tax consequences for your mother because it may seem like a gift to the IRS.
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True. If your mother sells you the house for less than market value, then that difference is a gift. However, the annual exclusion from the gift tax is $12,000 this year. So if your mother is selling you and your husband the house, you could exclude $24,000. If your mother and another person (your father, step-father, etc.) both own the house, then you could effectively exclude $48,000. But there are always exceptions, loopholes and what not, so be sure to consult a real estate attorney.