My_question_is: US-specific Subject: gift of equity Expert: taxman at centa.com Date: Sunday October 22, 2006 Time: 05:55 PM -0400 QUESTION: my husband's grandmother has passed away and the family would like us to buy the house. The realtor appraised the house at $79,000.00 but they will sell it to us for $60,000.00. How woould a gift of equity work in this instance/what are the benefits of it? Also, they do not want to pay any additional monies because they are taking a lower amount, i.e. inspections or closing costs. Would the gift of equity help in these instances. Thank You! ================================================= david ingram replies: I do not know what state you are in and what local property transfer and other charges are. However, in general, these are usually based on value of some sort. Therefore, transfer, legal and other costs will likely be lower if sold for $60,000 rather than $79.000. However, at the amounts suggested, there is no gift or estate tax ramifications that I know of. Thank the family for the gift. -------------------------------- David Ingram's US / Canada Services US / Canada / Mexico tax, Immigration and working Visa Specialists US / Canada Real Estate Specialists My Home office is at: 4466 Prospect Road North Vancouver, BC, CANADA, V7N 3L7 Cell (604) 657-8451 - (604) 980-0321 Fax (604) 980-0325 Calls welcomed from 10 AM to 10 PM 7 days a week Vancouver (LA) time - (please do not fax or phone outside of those hours as this is a home office) email to taxman at centa.com <mailto:taxman at centa.com> www.centa.com <http://www.centa.com/> www.david-ingram.com <http://www.david-ingram.com/> Disclaimer: This question has been answered without detailed information or consultation and is to be regarded only as general comment. Nothing in this message is or should be construed as advice in any particular circumstances. 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