If so, they can sell within 2 years and not pay capital gains taxes on the sell of the home.They could take that money and buy multiple rental homes in other areas if they wanted, or use the money to downsize in to a different home while still having money left over.

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $20,000

Cash invested: $45,000

Sale price: $99,000

Contributors:
Peter Vekselman

Partner Driven...

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Good afternoon everyone!I have always been surrounded by real estate and real estate investing since I was little. When I graduated I decided to pursue a career in becoming a real estate agent! It has been 4 months an...

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Additionally, your brother would inherit your cost basis in the property, which could result in significant capital gains tax if he sells the property later.

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The client will be solely responsible for capital gains taxes, including depreciation recapture, regardless of the agreement to share proceeds.