Don't Trust a Gift House in the Lap (Part 2)

On Sunday, Some Guy was back at Hick's SUS2.5. Not about the truck deal, but about the house. As if we need anything else to worry about.

"Some Guy was there again. He said a buddy told him that he'll have to pay taxes on the money he gets for the house. Maybe up to 30%. I told him yeah, he'll get taxed for what he makes off the house. I don't know how much. He asked if we could write the sale for less. For $15,000. And pay him the rest in cash. I told him I didn't think so. But I needed to talk it over with you."

"The point isn't if we are ABLE to do it. But if we WILL do it. That amount of sale will be recorded. It will look like we bought a $15,000 house. Then when WE sell it, that will look like a much bigger profit. WE are the ones who will get taxed on it then."

"He said if he had lived in it for two years, he wouldn't have to pay the taxes. I said that's right, too bad he couldn't do that, but he said his name wasn't on the title then."

"So he's particular about how he wants to cheat on the taxes, heh, heh! I don't like the idea of cash. It will be hard to get. The bank tracks every withdrawal over $1000. There will be a record that we took out a lot of cash. You'll probably have to ask for it ahead of time. It might set us up for a tax audit in the future."

"One of my buddies said he took out a lot of money to buy a car for cash. The teller asked him what it was for, and he said, 'None of your damn business! It's MY money!' So they have to give it to you."

"I'll call The Pony, since we're partners in this. Just to get another opinion."

The Pony heard the story, and said, "Sounds like tax fraud to me. But I don't care either way."

We have decided this is not an option for us. It's either done like a regular real estate deal, with a cashier's check, or we are out.

As of this writing, it's Sunday night. On Monday, Hick will tell Some Guy (if he shows up at the title office) that we expect a regular (legal) agreement and purchase, or he can sell to his other (higher offer) buyer. I seriously doubt that somebody else will hand over that much cash.