USA Buying of a home from family member

[Java021]

Hello All,

I wanted to see what kind of tax implications would I run into with my situation:

So my brother in law and I were in a deal for him to buy a home for me. So he bought a home, for which I also pitched in 70k (home value was 225K) we bought the home in cash in 2015 November. During the 5 years, I had maintained the house, mostly was up for rent, and managed it. Just in 2020 I wanted to have the house in my name so that I am able to take the property taxes onto my sch C. Since the house was in his name I could not do that over 5 years.

My question is we did a quit claim deed in 2020 and he transferred the house in my name. The house was sold at the value that we bought it for..and I paid him cash. What are my tax implications on this? How do I report this on my 2020 since we did not go through any realtors or any title companies. What do I have to consider? To me, I just see it as equal buy and sell where I did not make any money and neither did my brother in law....how does this work?

Thanks

 

[Werner Reisacher]

The first question that comes to my mind - where did all this cash come from and where did the rental payments go to?. I might actually not be the only one who is asking these questions. You need professional advice to make sure that you are not running into tax implications.

 

[kirby]

Hi java021
Sending you a private message. Log in to the forum then click on the envelope icon at top.