Can anyone help me.
Here is my situation. My father bought a home (as investment) and I lived in it (paying the mortgage and bills) until he finally added me as partial owner. Then after 7 months, we agreed to sell the house. We incurred roughly $120K profit, of which I gave my father only $50K (that's all he wanted). Now, I turned around and bought a townhouse. My question is - do you know if there are any loop holes so that I can avoid paying high taxes on this. I was reading into the unified estate and gift credit but do not seem to grasp whether this concept applies in this situation. Any help/solution will be appreciated.
Thank you.
Here is my situation. My father bought a home (as investment) and I lived in it (paying the mortgage and bills) until he finally added me as partial owner. Then after 7 months, we agreed to sell the house. We incurred roughly $120K profit, of which I gave my father only $50K (that's all he wanted). Now, I turned around and bought a townhouse. My question is - do you know if there are any loop holes so that I can avoid paying high taxes on this. I was reading into the unified estate and gift credit but do not seem to grasp whether this concept applies in this situation. Any help/solution will be appreciated.
Thank you.
