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Can I sell a property for under it's value (i.e. to a family member) and what are the consequences taxwise?
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Can I sell a property for under it's value (i.e. to a family member) and what are the consequences taxwise?








svengali
Rating
You can sell preoperty to a family member for less than it's market value. However you should then leave the country for a long holiday. The Inland Revenue & Excise will be round asking for their percentage of the correct price as an alternative to deliberate tax evasion charges..


bill
Rating
Could you not gift the house to them and they gift some cash to you


sarah1962
contact citizen advice they are great, they will be able to guide you, all the best


JZD
Rating
The answers above seem to concentrate on the US law. I'm sure they're right. If you're in the UK, it's somewhat different. You can, as several answers have said, sell it for whatever you want. If it's below what you paid for it, there's no CGT. You can gift it, if you wish for a nominal sum (a £1). The income received from the sale is not taxable if it's your principal residence. The only adverse consequences would be non-tax related if the sale was an attempt to hide your assets from creditors. EG: selling to a family member for a nominal sum to put it out of the reach of a judgement creditor or a receiver. I'll not pursue that line, as it's not the question you asked. If it's bone fide, those consequences do not arise anyway. So, subject to the above, the simple answer is "none". Addition following Bill's answer: This suggestion (of mutual 'gifting') would be seen as an attempt to avoid stamp duty and I would not recoommend it.


podge
Unless it is sold to ones spouse in the UK there will be the question off capital gains if and when it is sold on again. I think the recipient may also have to pay stamp duty relative to its true value.


lindy~*~*whoops*~*~
you can sell a property for any amount you want - properties have been sold for £1 - or less!


ainger452
Ok someone will answer your question with knowledge. If your house is worth 100K and you sell it for 50K the person's basis is 50K so if they sell it or 200K they pay tax on 150K instead of 100K. If they had to pay taxes on it. The 50K deduction would be a gift for gift tax purposes so when u make 1million dollars worth of qualifying gifts you will have to pay a tax but for this 50K if you are not over 1 million yet then there is no gift tax but u need to have ur accountant fill out a 709.


cybersharque
Rating
Yes, you can. Income taxwise, you are exposed to tax on what you realize from the property, so if you have no gain, it does not matter that you might have gotten more elsewhere. If you have a paper loss, however, you might not be allowed to deduct the loss because you can't deduct intra-family gifts. Property taxwise, since this is not an arms-length deal, the assessed value of the property probably won't go down, but you never know when you might be blessed with a stupid tax assessor.


hexeliebe
Rating
You can sell your home for whatever you feel like as long as you are not obligated under medicare / medicaid or other federal program based on assets. The tax consequences depend on a full review of your financial position and is not really answerable on an internet forum.


Wabbit slayer
Rating
Why sell, quit claim it to them as a gift.


Dog Lover
Rating
The county will come out and assess the property following any sale and attach a taxable value to it in accordance to their laws... So, sure, if you want to sell if for $1.00, the county will just assess it. Go for it.







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