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Thumb of Michigan | If this farm is their present residence, just sell it to you. The could hold the 'mortgage' (not land contract). There wouldn't be any cap gains, if the right ownership/value (talk to a CPA). The price of the land would be what the fair market value is (licensed appraiser), minus lifetime lease (where they can live there, the rest of their lives). Which would lower the actual selling price, for capital gain exclusion allowance. With the lifetime lease, either or both can be responsible for repairs/maintenance/up grades and/or utilities. Example: who pays for new roof or well, who pays for pumping septic, fixing screen door. The more 'stuff' you're responsible for, lowers the selling price (via increasing the lifetime lease value) and visa-versa.
Mortgage could be structured to pay for 5 years a passed their life expectancy, or longer/shorter. Depending partly on THEIR needs. In case of LTC needs arrive, only monthly mortgage payment is available, to be used for their care (and possibly not all, if both were still a live). | |
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