LSmith33 Posted March 29, 2008 Report Share Posted March 29, 2008 My client owns three houses, one is his personal residence and the other two were purchased for his kids to live in. He took out a mortgage against his personal residence of $200k to buy the third house in 2007. To pay the mortgage off, he would like to sell the 2nd & 3rd houses to each kid for $100k each. If he did that would any gain (no loss because of related party) be figured on the price of $100k and then the difference between sale price and FMV considered a gift or does that not even come into play? One of houses was purchased in 2000 for $60k (FMV per client $250k), the other was purchased in 2007 for $220k (FMV per client $350k), plus he's done a lot of improvements on that house. Help? Thanks, ~Laura Smith, EA Quote Link to comment Share on other sites More sharing options...
michaelmars Posted March 29, 2008 Report Share Posted March 29, 2008 personally i tell clients with questions like that, "unless its urgent, can you give me a ring after 4/15 when we can discuss it lesurely?, i'll even let you buy me lunch while we talk about it" then i get onto another return! Quote Link to comment Share on other sites More sharing options...
LSmith33 Posted March 30, 2008 Author Report Share Posted March 30, 2008 personally i tell clients with questions like that, "unless its urgent, can you give me a ring after 4/15 when we can discuss it lesurely?, i'll even let you buy me lunch while we talk about it" then i get onto another return! Thanks for your input. Quote Link to comment Share on other sites More sharing options...
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