Hi Harv,
Longtime follower and fan of your work here. I had to make a cdc account to ask a question to which I'm not sure you would have an answer because it's more of accounting question than a real estate one, but I'm sure you've seen a lot of different things so maybe you could pass on a possible tip.
Five years ago I used my Homeowner Line of credit to put 20% down to buy a home for my son and his wife (so technically my second home). I was essentially just acting as a bank for him, he would give me the money for the mortgage payments every month until he had built up enough equity so he would have a down payment and then could go get his own loan and buy the house from me.
eg. I purchased for 500K five years ago, he has paid it down to 400K, I will now give him 100K for a down payment so he can go get a loan to buy it off me for 500K.
So everything has worked out as planned. I figured if I sell for the same price as I bought I can avoid tax issues. But now I'm wondering if there is some obvious "play" I might be foolish not to take advantage of in this situation...or maybe there is an obvious problem lurking?
The market has been fairly stable here so the selling price being the same is not unreasonable.
Really, I'm just looking for a general comment to send me in a direction to investigate if necessary.
Thanks! @Harvey Spector