My parents own property that is worth 10 million dollars. The neighbor who owns some property next to my parents property wants to buy our land through pressuring or by illegal and corrupt methods. My parents are tired of him and do not want to sell it to him.I would like to buy the proprty from them so that the neighbor will give up on it. I do not know if it is legal to sell the property to me for 100 dollars as if transferring to my name so that it will make it tough for the neighbor to think about our property . Is it illegal for tax purposes. Does it cost me a lot to buy the land from them.
2006-10-02 10:06:18 · 7 answers · asked by INVENTOR 2 in Business & Finance ➔ Renting & Real Estate
1. Propery is in India. I live in USA. It has been 12 years that the neighbor is trying to bother us. I am young, I might use the property in the future, parents do not. Land is sitting idle. I know the law. It will take another 30 or 40 years since I do not sell it to him. The neighbor may not have any hope to continue bothering me in the future.
2006-10-02 10:17:32 · update #1
Consult a legal professional who specializes in real estate.
2006-10-02 10:09:07 · answer #1 · answered by Anonymous · 0⤊ 0⤋
You would need an appraisal to have a fair market value on the property. Any amount between what you pay and the value could be considered a "gift of equity". In the States your parents would be able to gift you 20,000. per year (in equity)
1. Get a proper value on the land, 2. Get a local lawyer (India) to assist you. There are probably other options available to you as well, but you should check the laws and tax issues in India.
2006-10-02 10:25:45 · answer #2 · answered by kimmyb 2 · 0⤊ 0⤋
You can sell property for any amount you wish, but I think you will encounter tax issues... Specifically, the gift tax- you are buying property worth significantly more than what you paid- your accountant will tell you that the difference is considered a gift in the eyes of the IRS. After you talk to your accountant, you might consider talking to a lawyer about the situation. Sounds like you need one.
2006-10-02 10:13:11 · answer #3 · answered by morlock825 4 · 0⤊ 0⤋
instead of selling it to you for $100, you can have your parents transfer the deed/title of the house into your name. costs some moeny to do this but you would have to pay this anyways even if yoru parents did sell it to you. this way, he could bother your parents all he wanted but since the land/house is in your name, he would have to then start harassing you in order to get the property. your parents could also legally give you power of attorney in this matter so that YOU would be the only legal party eligible or entitled to handle this matter. I would highly suggest the transfer of title/deed into your name. it will cost a fair amount in order to do so but it would alleviate the burden on your parents and would make the neighbor go to great lengths in order to try and buy the land from you.
2006-10-02 10:43:25 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Best thing to do is to see an attorney. Your parent might consider putting the property into a trust. The trust would then be the owner of the Property. I believe this would not be a taxable transaction.
Again, seek legal advice.
2006-10-02 10:39:33 · answer #5 · answered by WJVV 4 · 0⤊ 0⤋
I would assume...I've heard of people selling their house to one of their children for $1.
Taxes is where it will hit you though
2006-10-02 10:16:17 · answer #6 · answered by ? 6 · 0⤊ 0⤋
yes you can sell it for as little as 1p just to legally exchange documents into the others name
2006-10-09 20:47:00 · answer #7 · answered by aileen ghoul 2 · 0⤊ 0⤋