I gave myself a great deal
November 28, 2012 3:36 PM Subscribe
Under what circumstances would somebody sell themselves a house for a drastically reduced price?
posted by blazingunicorn to Work & Money (17 answers total) 2 users marked this as a favorite
I'm doing some fact-checking for an article, and had to look up the property records to verify the year that someone bought a house. After getting the official sales history from the online county records, I got this transaction history:
-X owns a house.
-Y buys the house in 1996 for $200,000. (Prior owner: X.)
-Y buys the house in 1997 for $70,000. (Prior owner: Y.)
-Z buys the house in 2001 for $300,000. (Prior owner: Y.)
So what's going on there--why would Y buy a house, and then buy it from herself for substantially less money a year later? I know that Y was running a business out of the garage, so perhaps there's some tax incentive. I may ask in the future, but am not expecting a clear answer, so in the meantime, I'm curious to know if anyone has ever seen anything like this.