GIFT

Laws about selling home to family members?

First of all we live in California. My mother wants to sell me her house and we don’t want any real estate brokers to be involved. Does anyone know the procedure when it’s between family members? Particularly in regards to taxes? Also would it be more cost-effective if my mom presents the house as a gift to me then I transfer the cash to her? Which one is the better way to save money, tax-wise?

Please pay an attorney a few hundred bucks to handle this matter. It will be well worth it. Also, you will not get the first time buyer tax credit since you are purchasing from a family member.

Cash Gifting Tax Law