Technical topics regarding tax preparation.
23-Jun-2022 8:43am
- Posts:
- 1737
- Joined:
- 14-Sep-2014 4:48am
- Location:
- New York
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.
23-Jun-2022 9:03am
- Posts:
- 18916
- Joined:
- 21-Apr-2014 9:28am
- Location:
- Pennsylvania
23-Jun-2022 9:15am
- Posts:
- 2867
- Joined:
- 21-Apr-2014 3:12pm
- Location:
- Southern Pines, NC
Is related party or FMV even an issue?
Retired, no salvage value.
23-Jun-2022 9:49am
- Posts:
- 1737
- Joined:
- 14-Sep-2014 4:48am
- Location:
- New York
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?
23-Jun-2022 10:43am
- Posts:
- 6575
- Joined:
- 23-Apr-2014 5:27pm
- Location:
- Maryland
23-Jun-2022 11:05am
- Posts:
- 2867
- Joined:
- 21-Apr-2014 3:12pm
- Location:
- Southern Pines, NC
Not a section 121 issue. Wasn't that the original question?
Retired, no salvage value.
23-Jun-2022 11:09am
- Posts:
- 2714
- Joined:
- 28-Apr-2021 7:00am
- Location:
- FL
My understanding is that a sale to the owner's S corp will also qualify.
Steve
23-Jun-2022 8:23pm
- Posts:
- 18916
- Joined:
- 21-Apr-2014 9:28am
- Location:
- Pennsylvania
What does that accomplish?
24-Jun-2022 7:23am
- Posts:
- 2714
- Joined:
- 28-Apr-2021 7:00am
- Location:
- FL
Return to Taxation
Who is online
Users browsing this forum: batjudge, chicagocpa, Exabot [Bot], Google [Bot], Google Adsense [Bot], keninmichigan, lckent, MilesR, Nilodop, Permanently-Diff, rbynaker, rdk70, SumwunLost, TAXMASTER, TheAnswerMan and 120 guests