Hello! My family recently put our house in california for sale. As you all know, the houses in Cali are super expensive. My parents are planning to sell this house for 500K and buy one in Nevada for around 280K. Are there any laws in either states that will interefere with us just buying a house "cash" in Nevada? We have lived in this house for more than 6 years everyone in the household works but it's getting harder and harder to make the monthly payments for it. Advice please!
2006-07-20 05:09:34 · 8 answers · asked by MRS.S 2 in Business & Finance ➔ Renting & Real Estate
Absolutely not. Your parents have $250k each allowance for capital gains, so if they sold for $500k, with any depreciation, they should be ok.
When they close escrow on the old house, make sure they obtain a certified copy of the HUD-1 statement to give to the closing agent in Nevada so they can show where the funds came from, if the question even arises, which I doubt.
Good luck :)
2006-07-20 05:18:21 · answer #1 · answered by Christine 3 · 0⤊ 0⤋
2
2016-07-19 04:49:40 · answer #2 · answered by Kenny 3 · 0⤊ 0⤋
No, there are no issues to hand at all. Even if your parents got the house for free, there will be no tax consequences either from the feds or CA. Since they are married and this is their primary residence and they have lived there for 2 of the past 5 years, the first $500,000.00 in gain on sale is tax free both to the IRS and CA.
The above poster that says there will be tax due is simply wrong.
2006-07-20 05:20:56 · answer #3 · answered by Bostonian In MO 7 · 0⤊ 0⤋
Yes. Whenever you want to make a large cash transaction, you will run into laws that deal with the laundering of money.
If you have a good loan officer, it will be easy to document the sale of the prior home and the source of the cash.
Good Luck.
2006-07-20 05:20:12 · answer #4 · answered by rightonrighton 3 · 0⤊ 0⤋
No interference involved, but if your parents are under the age of 65, they will be liable for taxes on the profit on the sale of their house (less the cost of the new house). For example, if they only paid 200K for the house, sold it for 500K, they have 300K profit. If they pay only 280K for the new house, they'll be liable for federal taxes on the 20K profit.
2006-07-20 05:14:49 · answer #5 · answered by Buster Van Buren 3 · 0⤊ 0⤋
No, I used to be a real estate egent in CA and as long as you haved lived in the home for 2+ years, you do not have anything to worry about
2006-07-20 05:18:13 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Rent-To-Own Homes : http://RentToOwnHome.uzaev.com/?bsGu
2016-07-12 01:19:07 · answer #7 · answered by ? 3 · 0⤊ 0⤋
nope as long as you can document where the cash came from you are good to go.
2006-07-20 05:13:00 · answer #8 · answered by Anonymous · 0⤊ 0⤋