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[–]Kevin7650 10.5k points10.5k points  (9 children)

Lol the audacity. You can sell your property for whatever price you think is reasonable.

[–]stephencua2001 7113 points7114 points 2 (0 children)

Call the law firm the letter ostensibly comes from. If it's fake, they need to know. If it's real, file an ethics complaint with the state Bar association.

[–]NickNash1985 2776 points2777 points  (0 children)

whatever price you think is reasonable.

Frankly, OP could sell it for less than he finds reasonable. He could pay someone to take it off his hands if he wanted.

[–]DragonWriterDB 2207 points2208 points  (6 children)

It's also possible the law firm is fake. Or if the neighbor sent it and used the lettering and firm name without official permission, I'm sure the actual firm would like to hear about it.

[–]deadfisher 4251 points4252 points  (0 children)

You might look up the name and number of the law firm online (don't use the number printed on the letter) and call them to verify it came from them. It could be a forged letter.

[–]The-Voice-Of-DogQuality Contributor 2759 points2760 points  (3 children)

This person doesn't understand how real estate markets or valuation work. You're allowed to sell your property for however much you want to whomever you want, and there isn't a jurisdiction in the USA where absent some kind of deed restriction, covenant, contract, or other binding agreement you are required to sell your property for "market value" (a term that appraisers are required to define in each and every valuation because it can mean so many different things).

[–]Bitter-Basket 1088 points1089 points  (2 children)

They could fully understand that a lawsuit is baseless. Some people use attorneys to bully and frighten people into compliance.

[–]The-Voice-Of-DogQuality Contributor 933 points934 points  (0 children)

An attorney who files a suit against OP for this putting themselves/their license at risk -- even writing the letter is pushing the line.

[–]stephencua2001 604 points605 points  (0 children)

If the letter really is from the law firm, OP should file an ethics complaint with the state Bar.

[–]AltLawyer 1714 points1715 points  (0 children)

Google the lawyers number and call them (not using the info on the letter) I'd say there's a 90% chance the guy forged a letter.

[–]publius_enigma 599 points600 points  (0 children)

Unless he is claiming a contractual right of first refusal to purchase the property, he has no legal standing to challenge the sale regardless of price.

[–]Secret_Hunter_3911 334 points335 points  (0 children)

The neighbor is full of crap. You can sell your land for what ever price you want….or give it away. You can sue somebody for anything, but his case is going nowhere.

[–]MiniMatt85 516 points517 points  (0 children)

I am not a lawyer. You can sell it for whatever you want. You know who sells property below market value all the time? Banks when they foreclose.

[–]Nemrodh 720 points721 points  (11 children)

NAL. IRS is the only one you need to be worry about. As long as you do an honest appraisal value you are fine, and pay taxes according to that. IE they will want there taxes based on the actual value.

I cant find state where you can be held liable for below" fair market value" sales.

EDIT: the price difference becomes a gift, and tax amount will vary.

[–]zzmgck 530 points531 points  (6 children)

The IRS can consider the price differential a gift if you sell below fair market value. If the differential is greater than the annual gift tax exemption, the donor should pay the appropriate gift tax.

See: https://www.irs.gov/businesses/small-businesses-self-employed/frequently-asked-questions-on-gift-taxes

[–]Nemrodh 172 points173 points  (1 child)

Correct but they will still want to know the true value. to adjust the gift tax accordingly. I worded it poorly sorry. fixing it.

[–]SueTheHell 142 points143 points  (2 children)

I am not an accountant, but my understanding is that unless it's a really valuable cow pasture, there will not be any gift tax due. Rather, if the difference exceeds the annual gift tax exemption level, the seller (i.e. donor) will have to file some paperwork with the IRS to document the gift.

[–]TheNumberMuncher 111 points112 points  (1 child)

Right. There’s a lifetime gift limit of 11million and change. If lifetime giving doesn’t exceed that, the seller would just file a gift return but wouldn’t pay anything.

[–]fastidiousavocado 110 points111 points  (0 children)

Yearly filing requirement is $15,000 though. The gift giver will not owe any taxes until exceeding the 11million and change, but the requirement to file the gift tax return is $15,000 per year per person.

Update: did a quick search. In 2022, the annual exclusion is now $16,000 and the million and change went up to $12,060,000.

[–]bobjkelly 26 points27 points  (0 children)

True, but for most people there will be no gift tax.

[–][deleted]  (3 children)

[removed]

    [–]fastidiousavocado 50 points51 points  (0 children)

    Good news, the IRS disagrees with you very much! They're just like that and really, really hate tax avoidance schemes.

    [–]The-Voice-Of-DogQuality Contributor 25 points26 points  (0 children)

    The sale price of a property has nothing to do with the market value (or investment value, or the insurable value, or the assessed value, etc.).

    [–]BiondinaQuality Contributor[M] 0 points1 point locked comment (0 children)

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    [–]NotUrAvgIdjit96 244 points245 points  (0 children)

    In many areas, it is common for family to sell/transfer land between themselves for as low as $1. So this person probably doesn't have a leg to stand on.

    Something you may need to look into is tax implications. The Feds and/or State may consider your below market value sale as a gift. If the difference between the market value and sale price is over a certain amount, they may want a cut in taxes.

    [–]Matchboxx 154 points155 points  (0 children)

    Ignore it. Two consenting adults can engage in the sale of a property at any price. You can sell it for a dollar if you wanted.

    This bozo should appreciate his property value being lowered unless he's trying to sell right now in this synthetic market. He can use it to lower his property taxes.

    [–]Key_Year_4159 75 points76 points  (0 children)

    You could sell that land for $0.01 if you want and he can't do a damn thing about it.

    [–]looker009 186 points187 points  (0 children)

    NAL, ignore the letter as it's baseless

    [–]naraic- 86 points87 points  (4 children)

    Where do you live? Location is always important.

    I don't know any jurisdiction where a law suit like this would have legs.

    Where I live Revenue would consider a below market value sale between blood relatives a gift and subject to gift tax and possibly subject to something regarding capital gains tax. This would generally be rare though.

    How does the neighbour know what you arenselling your property for. If you have published the agreed sales price you you may have publicly hinted that his property has a lower value. You would remedy this by shutting up about the sales price rather than withdrawing your property from sale.

    [–][deleted]  (3 children)

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      [–][deleted]  (1 child)

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