My elderly parents own quite a valuable piece of land which the children will inherit.
Can the children purchase the land at a devalued price prior to their deaths to avoid exhorbitant death duties.Is there a minimum purchase price to be paid and how is it established?
2007-11-21 06:41:46 · 8 answers · asked by Tim S 1 in Politics & Government ➔ Law & Ethics
Instead of asking these kinds of questions on Yahoo Answers, you may want to contact a tax attorney that can help you. You can't trust that any of the answers that you receive are going to be good. Some people on here believe the fallacy that you aren't legally required to pay any income tax at all.
2007-11-21 06:44:18 · answer #1 · answered by Downriver Dave 5 · 0⤊ 1⤋
Fair price must be paid. But the price can be financed "by here pay here style". If the parents "gift" back each payment made, then name those children as the recipient of the debt in the will, the children will end up owing themselves the money remaining in the end. Though this still has some tax burden, it is a lot more limited because the money isnt realized at that point, and it is just income.
2007-11-21 14:47:33 · answer #2 · answered by this_takes_awhile 3 · 0⤊ 1⤋
You really need to see a tax attorney. Many times, it is better to inherit for a variety of reasons. At the very least, go to business and finance YA. States differ too, so where you live matters. Also, if you inherit, there is a stepped up value for tax reasons. Otherwise, it will be quite low and capital gains later will be very high. You would not be the first to end up paying more taxes while trying to avoid them.
Spend a few dollars for an expert.
2007-11-21 14:50:10 · answer #3 · answered by Middleclassandnotquiet 6 · 1⤊ 0⤋
No. The children would have to purchase the property for fair market value. Otherwise the conveyance would be considered fraudulent.
The fair market value would be determined by an appraisal.
2007-11-21 14:51:46 · answer #4 · answered by Starla_C 7 · 1⤊ 0⤋
Listen to the guy telling you to get a lawyer. Also, the feds are generally not too excited about being defrauded out of money so you can safely assume there is some law against duping them out of it.
2007-11-21 14:46:41 · answer #5 · answered by qb 4 · 2⤊ 0⤋
They may be able to purchase it for a low price, or have it gifted t them, but there may be gift taxes to pay. Check with an estate lawyer.
2007-11-21 15:02:26 · answer #6 · answered by Cindy B 6 · 0⤊ 0⤋
I understand that in FL they can do it through a quit claim deed. Talk to a lawyer.
http://www.wisegeek.com/what-is-a-quit-claim-deed.htm
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2007-11-21 14:59:31 · answer #7 · answered by The Wiz 7 · 0⤊ 0⤋
well depends if the owners want to sell it for that
2007-11-21 14:44:41 · answer #8 · answered by Kieran Bilginer 2 · 0⤊ 1⤋