Tax issues, said Neil V. Carbone, partner at Farrell Fritz, P.C., in New York, including gift tax and income tax. A sale for less than fair market value involves a partial gift. If the amount of the gift exceeds certain thresholds, the gift would have to be reported by the donor on a gift tax return and it could trigger a gift tax.

The gain in the sale, between the discounted price and the seller’s basis, would likely be reported on the seller’s tax return.

Read more

Photo by Porapak Apichodilok from Pexels