[dbussone]

Originally Posted by Buffalo Jim

In my lengthy career as a Commercial Banker I have seen this type of transaction a few times
1 ] No , I doubt very much that such a transaction even if for " cash " is anything close to a " Money-laundering " scheme . Calling a purchase of real estate a ' cash " deal only means that there is no loan involved to acquire the property . Even a " money-launderer would not be making this public type of transaction with a suit-case full of cash

2] usually when you come across this type of situation there is another " part of the deal " involving a separate piece of income producing real estate or as is often the case a viable successful ongoing business .

3] The " other " part of the deal involves selling say an ongoing business at it`s " Net asset value " which leaves no capital gains to be subject to income taxes . The " Cash flow " value of the business say in this case about $500,000 is added into the price of a home residence .

4] Recall that a Homeowner over the age of 55 who has lived in their residence for 2 years or more can claim a one time tax exemption for the Capital Gains they might realize upon sale of their home .

5] So......... say I own a business which at market is worth about $750,000 as a going concern . say the physical assets of the business are worth about $250,000 . if I sold the business for $750K , I would be subject to long term gain taxes on the $500K over and above the book value which is $250K .

6] So as part of my negotiations I agree to sell the business for only $250K [ book value ] , if and only if the buyer also agreed to purchase my residence for $500K more than it might be appraised for .

7] Net result , I sell my business and my residence and avoid any Capital Gain Taxes .

8 ] Now before every former CPA , Lawyer et al come at me : I have seen this done in " real life " 2 or 3 times . The deals took place in the Buffalo area and also took place almost 10 years ago . So I would not be in the least bit surprised if the " Tax -Folks " have by now figured out how to prevent such structured transactions . Then again ..................

Thank you for a thoughtful and grounded explanation. I'm still waiting for someone to say it has something to do with an alien invasion.

[Beaner]

Watched this thread yesterday and had many good laughs. Hate to ruin your fun guys but my sister-in-law is the buyer. She is not an alien, not avoiding taxes, not laundering money, nor does she own a cigarette boat. She is a great gal that has been very blessed and fell in love with TV just like the rest of us.
We didn't tell her about this thread and hopefully she won't she it and see all the negative attitudes and envy that we told her wasn't prevalent here.
Happy New Year and let's show that we really are America's Friendliest Hometown.

[theorem painter]

Originally Posted by Beaner

Watched this thread yesterday and had many good laughs. Hate to ruin your fun guys but my sister-in-law is the buyer. She is not an alien, not avoiding taxes, not laundering money, nor does she own a cigarette boat. She is a great gal that has been very blessed and fell in love with TV just like the rest of us.
We didn't tell her about this thread and hopefully she won't she it and see all the negative attitudes and envy that we told her wasn't prevalent here.
Happy New Year and let's show that we really are America's Friendliest Hometown.

Bravo and welcome to your sister in law. I also hope she doesn't read this thread. Some of the comments were clearly inane.

[dbussone]

Originally Posted by Beaner

Watched this thread yesterday and had many good laughs. Hate to ruin your fun guys but my sister-in-law is the buyer. She is not an alien, not avoiding taxes, not laundering money, nor does she own a cigarette boat. She is a great gal that has been very blessed and fell in love with TV just like the rest of us.
We didn't tell her about this thread and hopefully she won't she it and see all the negative attitudes and envy that we told her wasn't prevalent here.
Happy New Year and let's show that we really are America's Friendliest Hometown.

And we are glad she is joining us. But you have to admit there were some hilarious posts.

Happy New Year.

[Madelaine Amee]

Originally Posted by Beaner

Watched this thread yesterday and had many good laughs. Hate to ruin your fun guys but my sister-in-law is the buyer. She is not an alien, not avoiding taxes, not laundering money, nor does she own a cigarette boat. She is a great gal that has been very blessed and fell in love with TV just like the rest of us.
We didn't tell her about this thread and hopefully she won't she it and see all the negative attitudes and envy that we told her wasn't prevalent here.
Happy New Year and let's show that we really are America's Friendliest Hometown.

I LOVED seeing your post! This is so typical of an online chat site. Everyone chimes in with their assessment of the situation and then out of the blue the truth comes out ................. you actually made my day!

[Chi-Town]

Originally Posted by Beaner

Watched this thread yesterday and had many good laughs. Hate to ruin your fun guys but my sister-in-law is the buyer. She is not an alien, not avoiding taxes, not laundering money, nor does she own a cigarette boat. She is a great gal that has been very blessed and fell in love with TV just like the rest of us.
We didn't tell her about this thread and hopefully she won't she it and see all the negative attitudes and envy that we told her wasn't prevalent here.
Happy New Year and let's show that we really are America's Friendliest Hometown.

Heck, I'd show her the thread. The posts are either intentionally funny or ridiculous or somewhere in the middle.
Either way, the fact that you speak so highly of your sister-in-law tells me she can handle the truth. [emoji6]

[Barefoot]

Originally Posted by Beaner

Watched this thread yesterday and had many good laughs. Hate to ruin your fun guys but my sister-in-law is the buyer. She is not an alien, not avoiding taxes, not laundering money, nor does she own a cigarette boat. She is a great gal that has been very blessed and fell in love with TV just like the rest of us.
We didn't tell her about this thread and hopefully she won't she it and see all the negative attitudes and envy that we told her wasn't prevalent here.
Happy New Year and let's show that we really are America's Friendliest Hometown.

Beaner, thanks for setting the story straight.
Some of the speculation was funny, and some (like the money laundering post) was way out of line.
Your sister-in-law now has a beautiful home on Lake Sumter.
I wish her much joy and happiness in her new community.

[Rango]

Originally Posted by Jim 9922

If people like they can buy it at whatever value they believe is proper. Is really anyone else's problem? There are several homes currently for sale at over $1,000,000. It's their money to spend as they see fit. I see no difference between these high home expenditures and the $700,000 motor coaches , or $250,000 sports cars, etc, one sees running around The Villages, or $300,000 weddings, or private jets.

or a $30,000 golf cart!

[Rango]

Originally Posted by Beaner

Watched this thread yesterday and had many good laughs. Hate to ruin your fun guys but my sister-in-law is the buyer. She is not an alien, not avoiding taxes, not laundering money, nor does she own a cigarette boat. She is a great gal that has been very blessed and fell in love with TV just like the rest of us.
We didn't tell her about this thread and hopefully she won't she it and see all the negative attitudes and envy that we told her wasn't prevalent here.
Happy New Year and let's show that we really are America's Friendliest Hometown.

You ruined a very entertaining thread. ) Please welcome your sister in law to The Villages.

[ADR0317]

Has it been verified that this woman is NOT an alien? :-)

[dbussone]

Originally Posted by ADR0317

Has it been verified that this woman is NOT an alien? :-)

Not that I know of. Please call MIB!

[spring_chicken]

Originally Posted by janmcn

It will be easy enough to background check the new owner as soon as the property transfers, unless it was bought under a corporate name.

Another insulting doozy. People want to run background checks on someone because they don't like how much they paid for a house? Just wow.
Two posts in this thread are very embarrassing for this board.

[dbussone]

Ouuuh. What's the second?

[spring_chicken]

Originally Posted by dbussone

Ouuuh. What's the second?

The money laundering accusation.

[dbussone]

Ok. I'll go with that. I'm sure this lady will be a wonderful neighbor and resident of the Villagers.