Can you sell someone a house for a dollar?
The short answer is yes.
You can sell property to anyone you like at any price if you own it.
The Internal Revenue Service takes the position that you’re making a $199,999 gift if you sell for $1 and the home’s fair market value is $200,000, even if you sell to your child.
How do I sell my house to my daughter?
The devil’s in the details, but you’ve got options:
- Let your child inherit the house.
- Gift the house outright.
- Finance your child’s purchase of the house.
- Sell the house to your child at a discount.
- Sell the house to your child but continue to live there.
- Let your child assume the mortgage.
- Use a personal trust.
Is it illegal to sell your house to a family member?
It is only illegal to sell your home to relative if you’re doing so to avoid taxes — and doing that illegally. Plus, if you’re selling for an extreme discount, you may be subject to an estate and gift tax, anyway. Otherwise, selling a home to a family member is just like selling your home to any other buyer.
Can I sell my house for half its value?
When you sell your home for significantly less than its fair market value, the IRS considers the value of that reduction as a taxable gift to your relative—even if no actual cash changes hands.