USA Buying of a home from family member

Joined
Apr 11, 2020
Messages
2
Reaction score
0
Country
United States
Hello All,

I wanted to see what kind of tax implications would I run into with my situation:

So my brother in law and I were in a deal for him to buy a home for me. So he bought a home, for which I also pitched in 70k (home value was 225K) we bought the home in cash in 2015 November. During the 5 years, I had maintained the house, mostly was up for rent, and managed it. Just in 2020 I wanted to have the house in my name so that I am able to take the property taxes onto my sch C. Since the house was in his name I could not do that over 5 years.

My question is we did a quit claim deed in 2020 and he transferred the house in my name. The house was sold at the value that we bought it for..and I paid him cash. What are my tax implications on this? How do I report this on my 2020 since we did not go through any realtors or any title companies. What do I have to consider? To me, I just see it as equal buy and sell where I did not make any money and neither did my brother in law....how does this work?

Thanks
 

Werner Reisacher

VIP Member
Joined
Jun 30, 2017
Messages
236
Reaction score
27
Country
Netherlands
The first question that comes to my mind - where did all this cash come from and where did the rental payments go to?. I might actually not be the only one who is asking these questions. You need professional advice to make sure that you are not running into tax implications.
 

kirby

VIP Member
Joined
May 12, 2011
Messages
2,445
Reaction score
332
Country
United States
Hi java021
Sending you a private message. Log in to the forum then click on the envelope icon at top.
 

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Top