Advice needed
My grandparent is 84 and wants to sell his house worth $400,000 to me for what he still owes on the loan amount of $150,000. He just wants to to live out his years in the house rent free. Then I'll probably rent it out for a while and then maybe someday I will go back to the house and live in it. In trying to shelter from taxes, what is the best way to architect a transaction to establish a higher cost basis? IRS says it establishes based on contract price, so would it make sense to "sell it for $400k" but gift back $250k? Just trying to set myself for when I go to sell it years from now. Thoughts or better ideas?