My parents own a tiny plot in Fort Worth that they are gifting to me. Unfortunately the plot is too small to build on.
A holding company, JH, owns all of the surrounding undeveloped lots. The street and the alley present problems for further development so JH and I have submitted the paperwork to vacate the alley in to our ownership.
During discussions, JH has agreed to swap titles. Our small lot plus the alley to swap with a nearby lot that is ready to build. It looks like a good deal for us. We get a build able lot. Our tiny lot plus the alley completes a large rectangle for JH. The trade seems fair but is advantageous to us.
The Questions: What are the tax implications of a title swap?What are the tax implications of gifting property? Does it make more sense to purchase the lot at a bargain price; will this set the value at that low price?
I don't really understand where to research or how to find answers to these questions.
Any suggestions and cautions are greatly appreciated.
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