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You're mixing up contract law and IRS regulations. The $1 sale is a valid contract, but somebody will likely pay taxes on it, probably the recipient since he re
by joonix 14y ago
You're mixing up contract law and IRS regulations. The $1 sale is a valid contract, but somebody will likely pay taxes on it, probably the recipient since he received a house at below fair value, which can be considered income.
- DannyBee 14y agoThe $1 sale may not be a valid contract, actually, it depends on the state, and whether they are still completely common law or not. Basically, under the restatement views, nominal consideration = no consideration under common law views, nominal consideration = consideration.