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buying cheap from the family

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jec411

Junior Member
What is the name of your state?What is the name of your state?Louisiana.

My grandmother owns 2 homes. I rent one of them and the other is unoccupied. I wish to purchase both from her. She has offered to sell them both to me at well below market value.

Unoccupied home is worth 90k. The home that I'm renting from her is worth 90k.

Short of taking advantage of her kindness and after speaking with a few mortgage pro's, I've determined this:

I'd buy the home I'm currently living in from her at 75k. Proceeds from that sale would satisfy both outstanding mortgages on the homes for her. She then signs the deed to the unoccupied home over to me.

I have no plans to sell either of these homes for many many years.

Questions:
How would a gift tax apply to either her or I given the relationship, the below market value selling price, and her giving the second home to me without sale?
Any other tax implications for either of us for this transaction?
Any tax bennies for her like a capital loss claim somewhere perhaps?

Thanks for your time.
 



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