My wife and I have a 2nd home. The loan that we have is assumable by an immediate family member. Her brother want to assume the loan and we are wanting to Gift him the equity since he's been renting for many years now. Is there any Tax Implications in this scenario? Are Loan Assumption considered Debit Relief? How will the Sale Contract (HUD1?) reflect as the sale amount if we are not receiving anything besides him taking over the loan?
Basis = $400k
Loan = $190k
FMV = $500k
Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
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