Best way to buy home from Relative for incorporated truck driver

Question

2055 viewsMay 1, 2018

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Anonymous Posted April 28, 2018

Hello,

I am an incorporated truck driver that doesn’t own a truck I just drive for a company. I pay myself a salary through my corporation. I am the only person under my corporation.

Father in law offered to sell me an apartment for 100k that is valued at 200k currently. I live in this apartment now and he offered that I pay in 25k instalments. I have close to 25k now and want to pay the first instalment sometime next month.

What’s the best tax strategy to make this transaction while not handicapping myself in the future by having to pay a ton of capital gains tax if I choose to sell it. I will most likely sell it two years after buying. Also He’s in real estate so I’m pretty sure he has his own corporation if that helps.

Thanks

1 Answer

score 0 · Answer 1 · 2018-05-01T20:39:49+00:00

Hi, your father-in law shouldn’t sell you the apartment for $100,000 less than market value, if this an investment property (e.g. rental property). This is because you are understating the true cost amount of the property, and so you will have a huge capital gain when you eventually sell the property.

Best way to buy home from Relative for incorporated truck driver

1 Answer

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