All Forum Posts by: Jay Gibson

The big Texas freeze broke pipes all through an old modular rental I have. Quotes to fix or replumb are more than the home is worth and even then the plumber (only one I’ve been able to get out do to issues all over the state) said a month before he could get to the job. I have spoken to tenant whom is not living there at this time due to not having water. I have told them verbally that I am not fixing the plumbing. I let them know that they will need to vacate and I will refund rent from when the water was lost and return all of deposit. How do I correctly proceed and document? No contract in place so month to month.

Thank you,

Jay G

I am purchasing a house from my parents under market value. FMV is $450k. My parents need to net $310k from house once everything is done. The lender is suggesting a sales price of 450k and a loan amount of 326k with my parents paying closing cost. Once the dust settles there should be 310k remaining and a gift of equity amount of 140k. (I am in Texas if it matters).

What would the tax implications be?

How would this effect either party for cost basis?

Thank you,

Jay