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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: David Jones who wrote (1870)	2/25/2002 8:15:47 AM
From: Road Walker	Read Replies (1) \| Respond to of 306849

David, re: "Not to dispute this "I've had no experience with inheritance" but for discussion doesn't it sound like there's a lot of room here for fraud? I would think the IRS would be interested in the actual proceeds?" Yes it does seem open to manipulation. Say property X's real value is $100K. Get it appraised at $125K, sell it at $100K, take the $25K tax credit. In my particular case, I was part of an estate that inherited a waterfront house that was appraised at ~$400K (10 years ago). But it's decorating was unique and dated, and the cost to bring it up-to-date was probably ~$100K. An appraiser doesn't really look at that stuff, they deal primarily with square feet and location, and comps. So the house sold for a little under $300K after a year on the market and the substantial cost of one years maintenance. Then along came this wonderful, totally unexpected tax credit. If I had known about the tax credit a year earlier, I would have been a much more open and flexible seller. That's why I recommend that anyone that buys and sells houses for profit research if this tax benefit is still in place, and if so, present the tax benefit information in any offer to any estate. John