Selling a home in Newport Beach or anywhere in Orange County, California for that matter, you want to make sure you aren't opening up a gift tax issue when selling to a family member. Gift Tax laws with the Federal Government are pretty straight forward. If a related party buys your house and does the purchase just like normal no gift tax liability will be created. However if you (as the seller) gift them some equity you have to be aware of the limitations. A single person can give a gift to anyone for up to $13,000 per year and a married couple up to $26,000 per year. Once you go over this threshold you need to file a gift tax with the IRS and right now the limit is up to $5,000,000 over your lifetime. Remember this doesn't include the additional $13,000 or $26,000 that can be given annually. So if you are gifting equity in your home above either of those numbers you will need to let the IRS know and it will go towards your lifetime gift allowance before the gift tax begins.
We were linked to David randomly through the MLS website while looking for a new home. We were living in Woodland Hills and wanted to move to Huntington Beach. If you have recently looked for a home in Huntington Beach then you know how difficult it is. David met up with us every Saturday and Sunday from the middle of January through the middle of March. He was even patient with us as we changed our minds from buying to renting when the frustration started getting to us. We finally decided to rent in Huntington Beach so we could be local and wait for more listings to show up. David met with us and helped us with meeting up with the property manager.We would highly recommend David as he tailored the listing to our specific needs no matter how many times we changed our minds. We will absolutely work with him in the next year when we look to buy in Huntington Beach. Shawn M