My in-laws sold some land but included my spouse and my name in the contract as sellers

My father-in-law decided to sell some land to a friend who offered cash. They drafted up a contract and included my name and my spouse’s name as “Sellers” along with my father- and mother-in-law. All four of us signed the contract. I didn’t know quite why my in-laws wanted to include us but I expected that they may have wanted my spouse and me to benefit from some of the money. When asked, they didn’t explicitly say why they put our names in, but I expected they wanted to stay ambiguous to keep it a “surprise” down the road.

The purchaser paid cash and during a get-together a few weeks later, my in-laws presented us with half of the cash–a nice gift. I did some research and figured IRS considered this a gift and the IRS website says the exclusion limit on cash gifts is 16k. The amount is below that so I figured we were good to deposit it no questions asked. Great.

But at some point, I re-read the contract and realized we are considered sellers (and “owners” too I guess, as per the sales contract, had no idea I owned land, lol). There is nothing nefarious going on as we all get along, but I’m wondering if this was a mis-step as now my spouse and I are considered sellers/owners of land I’ve never seen or been on :).

So now I’m wondering…uh, Do I owe capital gains tax on this cash that I thought was just a gift? Should I not deposit any of the cash to avoid that? Is the state gonna send me a letter at some point saying “what’d you do with those profits from that land you sold?” I was told by my father in law that it was sold at a profit. I really don’t know much of this world, so I’m tring to get as much info as possible. Hard to google this šŸ˜‰

In Missouri if it matters.

submitted by /u/HighSilence
[link] [comments]

My father-in-law decided to sell some land to a friend who offered cash. They drafted up a contract and included my name and my spouse’s name as “Sellers” along with my father- and mother-in-law. All four of us signed the contract. I didn’t know quite why my in-laws wanted to include us but I expected that they may have wanted my spouse and me to benefit from some of the money. When asked, they didn’t explicitly say why they put our names in, but I expected they wanted to stay ambiguous to keep it a “surprise” down the road. The purchaser paid cash and during a get-together a few weeks later, my in-laws presented us with half of the cash–a nice gift. I did some research and figured IRS considered this a gift and the IRS website says the exclusion limit on cash gifts is 16k. The amount is below that so I figured we were good to deposit it no questions asked. Great. But at some point, I re-read the contract and realized we are considered sellers (and “owners” too I guess, as per the sales contract, had no idea I owned land, lol). There is nothing nefarious going on as we all get along, but I’m wondering if this was a mis-step as now my spouse and I are considered sellers/owners of land I’ve never seen or been on :). So now I’m wondering…uh, Do I owe capital gains tax on this cash that I thought was just a gift? Should I not deposit any of the cash to avoid that? Is the state gonna send me a letter at some point saying “what’d you do with those profits from that land you sold?” I was told by my father in law that it was sold at a profit. I really don’t know much of this world, so I’m tring to get as much info as possible. Hard to google this šŸ˜‰ In Missouri if it matters. submitted by /u/HighSilence [link] [comments]

<a href="Read More“>View Full Article

Need More Commercial Real Estate Leads?SAVE 40% this month!

Our commercial valuation calculator was created to evaluate commercial real estate. In 6 quick steps you will know your NOI, CAP RATE, and IRR.

Now you can get your own branded version of our calculator!

Generated by Feedzy