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Sale of primary to a related party

Technical topics regarding tax preparation.
#1
philly  
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Taxpayer and spouse want to sell their primary residence to their son and take advantage of the IRC code sec 121 $500,000 exclusion of capital gain. As long as the residence is sold to the son at fair market value is section 121 allowed when it involves a related party.
 

#2
Nilodop  
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Yes.
 

#3
HowardS  
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Is related party or FMV even an issue?
I suffer from depreciation.
 

#4
philly  
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In order to be a valid arm's length transaction, the sale to the related party should be at FMV?
If the sale to the son is at a value less then FMV does that constitute a gift?
 

#5
sjrcpa  
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Part sale and part gift.
 

#6
HowardS  
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Not a section 121 issue. Wasn't that the original question?
I suffer from depreciation.
 

#7
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My understanding is that a sale to the owner's S corp will also qualify.
Steve
 

#8
Nilodop  
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What does that accomplish?
 

#9
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Not much.
Steve
 


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