buddyjuf

Say there is a piece of land valued at 300 000$, in a fast developping region, and the seller wants to sell it to you for 200 000$ because he is in need of cash. He asks for a check for 75 000 and 125 000 in cash. He does this simply because he wants to put down on paper that the land was only sold for 75 000$ so that he doesnt pay all those taxes on the additional 125 000.

Now you own this piece of land, and say the value goes up to 400 000$. If you were to sell it, how much taxes would you pay? Is it easy to find people to give you a check of 150 000$ and the rest in cash? What other options do you have to profit from this as much as possible and not lose almost everything in taxes?

thank you!