Yahoo Answers is shutting down on May 4th, 2021 (Eastern Time) and the Yahoo Answers website is now in read-only mode. There will be no changes to other Yahoo properties or services, or your Yahoo account. You can find more information about the Yahoo Answers shutdown and how to download your data on this help page.
Trending News
Selling my home to a company I own to avoid repayment of tax credit?
I bought a home in 2007 and have to repay a tax credit if the home is converted to a rental property. I already know you dont have to pay the credit back if you sell the home for a loss to an un-related person. Could I sell the home to a LLC company I own for market value (which would be a loss) to avoid repayment of the tax credit. Then rent the property out under company's name?
2 Answers
- coraannLv 78 years agoFavorite Answer
No.
A sale would have to be to someone " at arm's length ".
That would have to be an unrelated person.
That is the reason the law is in place, to prevent the type of maneuver you are contemplating.
Source(s): Knowledge. - acermillLv 78 years ago
What part of this are you missing ? A LLC in which you are a partner IS a 'related person'. Uncle Sam will check this VERY closely. You will be required to sell the home to the LLC at 'fair market value' or higher. If realistic 'fair market value' is less than you paid for the property, you can avoid most penalties, no matter to whom you sell the property.
