"So yes, you can sell a house for $1, but it's essential to understand the legal requirements, tax implications, and possible unintended consequences. So whether you are considering selling your home in Portland, OR , to your children for $1 or possibly transferring ownership of your vacation house in Los Angeles, CA , to your sister, keep reading to dive into the legal framework, tax rules, and important considerations for a $1 property transfer."
"The lifetime gift tax exemption is one of the most important concepts to understand if you're considering a $1 property transfer. This exemption sets the total amount you can give away over your lifetime without owing federal gift tax. For 2025, that amount is $13.99 million per person, and it typically adjusts annually for inflation. Whenever you sell a home for far below its fair market value, the IRS views the difference as a gift."
Selling a home for $1 is legally possible, particularly in transfers between family members, but may trigger extra scrutiny from local jurisdictions and lenders. Local officials may require additional paperwork or an affidavit when the sale price is far below fair market value. The IRS treats the difference between sale price and fair market value as a gift, which counts against the lifetime gift tax exemption. For 2025 the exemption is $13.99 million per person and typically adjusts for inflation. Gift letters often clarify that a transfer is a gift rather than a loan and are commonly required by mortgage lenders.
Read at Redfin | Real Estate Tips for Home Buying, Selling & More
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