How would I sell land without showing it as income?

Question

My neighbor wants to sell me one acre of land but they don't want the money to show as income because it will effect her medical assistance from the state. Is there a way to do that legally?

Answer 1

If it is a cash deal you could use this common clause on the deed - "for 1 dollar and other valuable considerations. I convey".

If the neighbor doesn't want to claim that income, that's up to them but, the med assistance could be considered obtained by fraud and/or deception.

If you are asked, by a county tax or recorder employee, what you paid for it, tell the truth and tell the neighbor you will tell the truth if asked. What they want to do is up to them, don't be a part of it.

The neighbor could also give you a great deal on the land and maybe you would return the favor and pay some bills for them in the future.

A couple things to remember....

If they sell it to you for a dollar and you later sell it for a fair price, you will have to pay taxes on that gain (profit).

Any way you do this to avoid claiming the income, you both could be charged with tax evasion and really slammed.

I really would try to keep it on the up and up...it's not worth it and is dishonest even though your intentions are trying to help someone out.

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Answer 2

Not legally. That's Medicaid fraud and she could even go to prison for it.

Although she could deed it to you for $1.00 legally, if you paid her more than $1.00 you'd be part of the fraud as well. Unless you paid her in cash and she kept the cash under her mattress it's possible that the state could find out about it through bank records.