Perils and pitfalls abound – Selling investment property to your offspring
Abstract: A perennial challenge for real estate investors is how to transfer property to their heirs in the most tax-advantaged way while also maintaining control of the property and its income stream. The IRS pays special attention to transactions among family members and generally assumes that any transfer among them is really a gift. Whether a transfer is considered a gift or a sale can have significant tax consequences for both parties involved. This article explains how to structure the transaction in a manner that suits the IRS.