Buying home from parent

[virginia]

Hi all
I will probably be buying my grandmother's home from my dad later this year. The assessed value is $110,000 he wants to sell it to me for $80,000. I want to make sure we're both doing this on the up and up. I think from my end, there will be nothing to do except for sign the documents for the sale of the house. I think he will pay gift tax on the $30k-13k annual gift exclusion, and then have to report it as a gift on his taxes. Is it as simple as that? Will I have to do anything for my taxes as well? At closing should there be anything in writing that shows where the other $30,000 went? Thanks-

 

[Brat]

Assessed value and market value in today's RE market may not be the same.

Years ago my parents recorded a sale of their home to my brother and his wife for $1 and love and effection. There was no gift tax involved and the house was worth more than $30,000 at the time. My sister wanted to buy the house from my parents (parents had other plans) so she filed a complaint with IRS. They told her to get a life.

Were I you I would consult a CPA.

 

[Leonidas]

My sister wanted to buy the house from my parents (parents had other plans) so she filed a complaint with IRS. They told her to get a life.

That put a smile on my face. Never thought I would say this, but here it is "Way to go IRS!"

I think OP may be right about the gift tax situation, but I know Brat is right in that the assessed value and what that sucker might really sell for could be quite different. Check some comps and see - heck, you might even be over-paying!