Questions

When purchasing Real Estate, if the money came from someone else $500k directly to escrow and the property is in the name of an individual. When the asset is sold after 2 years and the individual keeps all the money, is the profit the one taxed as capital gains only? Or because the individual is keeping all the money that wasn't his (with permission of the individual that paid for the asset) will the whole $500k pay some sort of tax?

That is a really ambiguous question - if someone gave you money, it really doesn't matter what you did with it. The money they gave you needs to follow tax laws related to gifting. If you invested that money and made a profit, you need to pay capital gains on your profits unless you have done something to off-set or delay paying those taxes.


Answered 10 years ago

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