My parents bought a condo for 100k that they agreed to sell me after a year for the same price. Since I am buying for the same price, will I owe any tax on the sale? Or is there another way to transfer the property in my name without doing a standard sale?
You have no taxable income from this transaction and so no tax to pay.
If the house value is much higher than they paid they may have some issues. And your basis might have to be calculated based on the facts and circumstances of the deal.
for the same price. Since I am buying for the same price, will I owe any tax on the sale? Or is there another way to transfer the property in my name without doing a standard sale?
I suspect you're asking about property transfer taxes, not income tax. That will depend on state/local law. Check with the Recorder's office.
Phil Marti VITA/TCE Volunteer Clarksburg, MD
Good points. There may be gift tax issues involved.
A related question. Suppose the house was sold for more than 100k. Then is the section 121 allowed because this is a related party transaction? I saw the following but no idea what it means
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(8) Sales of remainder interests For purposes of this section- (A) In general At the election of the taxpayer, this section shall not fail to apply to the sale or exchange of an interest in a principal residence by reason of such interest being a remainder interest in such residence, but this section shall not apply to any other interest in such residence which is sold or exchanged separately. (B) Exception for sales to related parties Subparagraph (A) shall not apply to any sale to, or exchange with, any person who bears a relationship to the taxpayer which is described in section 267 (b) or 707 (b).
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