QUESTION
Property transfer for $1.00 when I bought it for 75k??
Asked on May 01st, 2012 on Real Estate - New York
More details to this question:
My friend asked me to buy a property he owned for $75k to get rid off a partnership he had with someone else, now I have to transfer the property title back to him but at $10 usd, instead of the same purchase price, is this legally correct? are any tax consequences for me?
1 ANSWER
1 Award
What did you pay? While $10 is on the deed form many lawyers use, you have to record the real price on the transfer tax form. If you are gifting $75K worth of property, you are liable for gift tax. But why would you lose 75K on this deal. I do not understand.
Answered on May 06th, 2012 at 8:28 AM