Real Estate Topics Forum :: View topic

Benylin · Guest

I am buying a home from a brother-in-law. The home has a market value between $450K to $530K based on area homes sold.

I'm buying it for $450K with my brother-in-law providing a $250,000 down payment zero-interest and to be paid back when I sell the home. I am financing $200K.

Anyone know if there are tax ramifications to this scenario?

nemmar · Site Admin

Benylin,

Your tax rate for the sale of a home will depend on many factors so I don't think you'll find a "one rate fits all" type of situation. I'm not an accountant so your accountant who prepares your taxes should know the exact rates you'll be paying since he/she is already aware of your current income level, marital status, legal dependents, other deductions and investments, and the financing details for the home purchase from your brother-in-law.

There are many articles in my online real estate library dealing with real estate taxes at http://www.nemmar.com/real-estate-cat4-45-1---Insurance-and-Taxes.html

Sorry I couldn't be more helpful. Perhaps someone else on this forum is an accountant who can provide more details.