Financial Aid & Additional Asset - Please help!

swimcatsmom
Sat, 26 Apr 2008 15:51:48 +0000

Also as the house is a second home and not used as a main residence the sale of the house would be taxable - probably @ $70k in taxes if it sells for $700k

I believe there may also be other tax consequences from selling the home at a very low price to the relative. If you sell the house at below market value to a relative the difference between fair market value and the sale price may be taxable under ‘gift tax’. This could amount to a hefty sum. Something you would need a tax accountant’s advice on. But I absolutely would not consider this.