My mother in law past o’ way few months ago and my father in law can’t handle their rental property. He asked us to take it over and just pay him some cash so he can pay off his current house.
On the rental property they don’t own any money, paid off, bought it in 70′s for 112K and the value is now about 285K. He wants to have about 200K orless from myself and mywife (his doughter). What would be the best way to approach this, aprticularly that my mother in law past’o way in May. They have filed this property as rental type and I am assming they have probably deprciated for about 50K. Is it true that my father inLaw’s step up bases is 175K now and if he sales the property to us for that value than he won’t pay any taxes. So what is the best way to buy it from him or just have the tile tranfer to us. One other thing if he gives us this house as a gift can I than refinance give him a gift using our life gift value, not sure. Also I don’t want to pay any down payment, if purchasing it.