From: "iNet Lending Group" 
Newsgroups: misc.invest.real-estate
Subject: Re: Gifting Equity???
Date: Sun, 14 Dec 2003 13:55:20 GMT

I get this type of question often, but usually it relates to another
purchase scenario;

A person is self employed, makes alot of money, but only reports 15k a year.
Good for taxes, bad for verifying income to purchase a home.

Point is, you cannot have it both ways.  I am not a tax expert, ask one, but
my understanding is, of course she will pay capital gains tax.  You of
course between yourselves could figure out who actually pays it.


-- 
Michael Papp
iNet Lending Group
www.iNet-Lender.com
MSN Messenger ID - iNet-Lending


"Dirk Heseman"  wrote in message
news:aFwCb.4791$hf1.2113@lakeread06...
> Yes, but can she do that without paying capital gains on the amount above
> what the original contract was for?
>
> "iNet Lending Group"  wrote in message
> news:QMvCb.1020$w23.637@nwrdny02.gnilink.net...
> > Exceptionally easy (and of course I offer my services)
> >
> > Purchase price of apprased value, from mom to you, gift of equity, loan
> > amount tailored to cash out at end, mom writes you check.
> >
> >
> > -- 
> > Michael Papp
> > iNet Lending Group
> > www.iNet-Lender.com
> > MSN Messenger ID - iNet-Lending
> >
> >
> > "Dirk Heseman"  wrote in message
> > news:KnvCb.4784$hf1.342@lakeread06...
> > > My wife and I bought our first home in July.  We bought the home, but
we
> > do
> > > not own it.  We had to put everything in my mother-in-laws name (yeah,
I
> > > know...bad, bad deal) since we could not get financing with acceptable
> > > terms.  The property we bought was a fixer-upper.  We now have
> > approximately
> > > %30 equity in the place now that the remodeling is done.  I would like
> to
> > > get the house in my name before the end of the for several reasons.
> What
> > is
> > > the best way to tap the equity we have without bringing any money to
> close
> > > and without having a contract for more than the original contract
(i.e.
> no
> > > capital gains tax).  Financing is not a problem if I have 20% down.
> > >
> > > The only solution I have come up with so far is to have my MIL sell me
> the
> > > house at an inflated price, and then pay me the difference between the
> > > original contract and the new one as my "wage" for making the
> > improvements.
> > > However, I will have to pay income taxes on this money.
> > >
> > > Does anyone have a better solution???
> > >
> > > Thanks!
> > >
> > > Dirk
> > >
> > >
> >
> >
>
>