Gary C. asked
My wife and I own a townhouse that we rent to my in-laws. We are going to create a life estate to give them the right to stay in that home for life. They are going to pay $100,000 for the life estate. Does that constitute income to us? When they die the townhouse reverts back to us. If we sell it then do we have to add the $100,000 as capital gains?
July 25th, 2023
Wendy B. answered
The $100,000 payment for the life estate constitutes income to you as it is considered a sale of a p...
July 25th, 2023
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