Can I sell my property to my son for any price I choose?
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Can I sell my property to my son for any price I choose?
My question sounds kind of dumb but here are the details. I live in Fulton county Ohio and live on 1 acre of land with a 26 year old mobile home on it. There are no liens on either. I want to sell it to my son for 50.00 so he can turn around and sell it and use the money to put a down payment on property he wants to buy. I am 70 years old and don’t want to deal with a real estate agent and all that involves. My other idea was to say for example If he can get 30,000 for the property, I would request from him one third the selling price so I can have some money to live on along with my social security. Is this a reasonable request or is either of these ideas illegal in some way?
Asked on March 18, 2016 under Real Estate Law, Ohio
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 8 years ago | Contributor
You legally can sell for any price you want, such as $50, or $50 plus 1/3 of what the property is later sold for. However, there may well be tax consequences to him. For example: say that the property is worth $25,000 and you sell it for $50--by getting a $25k property for only $50, he had a net gain, which may be viewed as incomes, or $24,950 and may have to pay taxes on that. You need to discuss the matter with a tax preparare to understand the tax effect of what you plan to do, or else you could possibly, with the best of intentions, saddle your son with a large prperty tax bill.
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