2 responses to “Buying the son’s house to avoid capital gain – Pls advise?”

• 

  godged December 6th, 2010 at 16:57

  Jessica

  The first $250,000 of capital gains are not taxable, $500,000 if it was a couple involved in this transaction.

  Someone may want to look into 1031 exchanges.

  Find a Realtor that does them on a regular basis and understand the process.

• 

  Dano N December 10th, 2010 at 01:54

  Jason

  Wont work. You stated the home she sold WAS NOT her primary residence, so it is taxed as capital gains and buying another home does not change that. She will be taxed on her profit of the sold home, so buying the sons house does not change that fact. Sorry. You can talk to a accountant or real estate attorney to verify.