The following is illustration
A property bought in my name several years ago for $200,000. I paid 35% down with mortgage of $130,000.
Now it worth $400,000. I like to sell to my first degree relative for $400,000. The relative put 35% down and with mortgage of $260,000. (the reason is simply because I can get about $260,000 - $130,000 - other fees = about $110,000 out for use.)
however, please suggest how to avoid "capital gain"?
I think
option 1: is possible to add a clause in addendum in the Purchase Sale agreement between me and relative, that the proceeds from the sale only "paid back to a loan borrowed by me from the same relative."
option 2: is possible for me to declare "that I bought the property several years ago was for the pure interest of the same relative, that means it was bought by the relatives just put title in my name?"
Are above suggestions workable? Any better ideas? Thanks
