Your Advice Please!
Here's the scoop:
Purchase price $160,000
Rehab $12,000
ARV $215,000
We're in a crazy sellers market so this is a spread I'm very happy with. Buying subject to, into a land trust, does that avoid transfer and recordation costs? Maryland is a tax happy state, so this is something I'm trying to avoid. Next, I buy it at $160,000, since I have no HUD 1, is my basis truly $160,000 or the original purchase price from the current sellers. (FYI, it happens to be $125,000) My attorney was like a deer in the headlights today with these questions, I'm relying on your opinions to help me with this one! Thanks
Your basis is $125,000.00. Even by putting it in a land trust you still pay transfer and recording fees. Sorry but all states are tax happy.