As some of you might know, we have some big names over certain areas. Not only agent, but some flippers.
So, I notice one funny thing in the property history. Why do they sell the house again for 0.88 in between?
DATE EVENT PRICE AGENTS
11/01/17 Listing removed $3,688,000
Source: U16818 Financial Services
$/sqft: $980
08/30/17 Listed for sale $3,688,000+316%
Source: U16818 Financial Services
$/sqft: $980
03/25/16 Sold $887,500-50%
Source: Public Record
$/sqft: $235
12/29/15 Sold $1,775,000+18.5% Robert Yu
Source: Public Record
$/sqft: $471
Seller’s Agent:
Robert Yu
(408) 252-9800
10/27/15 Listed for sale $1,498,000
Source: RE/MAX Real Estate Services
$/sqft: $398
Those $900K lost in 3-25-2016 seem suspicious to me.
But I am not going to accuse anybody of anything wrong since I am not familiar with sales among relatives, but it may be a way to take off some taxes off your back if you gift a property. I forgot all I learned in real estate regarding that issue.
It’s likely to be a financing transaction (construction loan). Someone on here has easy access to more info could look it up, but doubtful it’s anything funny or tax avoidance.
IMO, not divorce with the names of transfers happened. I guess ptiemann statement is right. The transfer in 2016 happened from a person to Trustee, and then Trust sold the home finally.
Let’s say that’s the case, 2 parties initially, then 1 party brought out.
Doesn’t it bring more disadvantage to the other party? Since the other party pay more tax for the final sale? (although long term, but tax of this amount is not a small number: 365-88 = 280)
You add the price base to what tax deductions you are going to get from the sale. The rest is what you are going to be paying in capital gains. I bet most RE investors have a property in the pipeline ready to buy within 45 days via 1031.
So, there’s a program that allows you to defer the payment of the capital gains for 30 years. You don’t need to be in a hurry to buy another property. This program is good for those high end flippers or people leaving the landlord scenario. The deal goes through an unsecured loan, and the process is the same as buying or selling any property or asset, through escrow. Nothing changes, except there’s a third party involved. Both seller and buyer get the property and the $.
I am helping a RE investor right now, 20+ properties being sold one by one. After the last sale, he will use 100% of the proceeds to buy himself and other partners a mall somewhere.
At the same time, I am setting him up with an IUL to take advantage of that money being spent. He will retire with a $1M tax free income a year 25 years from now.