Expert: Sue Bernstein - 3/2/2005

Question
Dear Sue,

I recently inherited my mother's home in the SF Bay Area.  I am interested in selling the home to my son and his wife.  Because of its location, the house was appraised at a high value.  My son cannot afford this price and, therefore, I want to sell the house at a significantly lower price to my son.  I have been told that I may have to pay a federal inheritance tax on the difference (appraised value - lower sale price), if I sell it below the appraised value.  Is this true? and if so, how can I sell it to them at an affordable value?
Thanks

Answer
Dear Dan,

I am sorry but this is a tax question and is outside the expertise of a real estate agent.  I would suggest you ask the question of an accountant on this site. They might also have alternative suggestions on how you can transfer the property and minimize your tax burden.

Good luck,

Sue Bernstein