[lendaddy]

I know next to nothing so this is all theoretical. I just want to know if this will work and if not why.

You sell a commercial income property and are left with a few hundred thousand in paper profits that you'll be taxed on.

Can you do this and avoid taxes?

Take that $300k and purchase the house of a family member from them (for what they owe).

Mortgage the house and pull 80% equity to roll into your business.

Rent the home back to that very same family member for the amount required to cover the note.


So you end up with $240k tax free to use toward your business and the family member that had gotten themselves into a bad spot with their home gets bailed out.

The position in the home would not be inflated and could sell to cover the note if required.

The fed and state tax savings would be over six figures.