Context:
Want to sell property to Nephew at
market value.
Don’t want nephew to run into any difficulties with revenue later on in case they query if it was bought at market value or lower than market value. (Assuming it may be queried due to relationship status.)
Plan is to get 3 valuations done and keeping the records as well as downloading internet research on similar properties sold in the area in past 2 years.
Then agree a fair price based on this information.
Question:
For tax purposes, in case it is queried, Would the above documentation be enough to show revenue that it was bought at fair market value.
And if not then what is best practice in this case?
Thanks in advance for replies.
Want to sell property to Nephew at
market value.
Don’t want nephew to run into any difficulties with revenue later on in case they query if it was bought at market value or lower than market value. (Assuming it may be queried due to relationship status.)
Plan is to get 3 valuations done and keeping the records as well as downloading internet research on similar properties sold in the area in past 2 years.
Then agree a fair price based on this information.
Question:
For tax purposes, in case it is queried, Would the above documentation be enough to show revenue that it was bought at fair market value.
And if not then what is best practice in this case?
Thanks in advance for replies.