Does anyone have experience to share about buying a house from a parent?

Question

I'm looking for information about the tax consequences, especially for the parent when they sell to a child below market value. It's so confusing. Anything else, suggestions, websites, experiences, etc. would be appreciated. The house is in California and the parent is in Wisconsin. Thanks.

Answer 1

I am not sure about the tax consequences if it is sold for below market, but I can give you some good info about the property taxes. As long as a house passes from one generation to another without skipping a generation, your property taxes will remain the same as long as you let the assessor know that. This is in California also. That can be a great benefit.