I have a question for the group. Any help would be appreciated.

I have a little cabin along on a river on leased land along with 12 other lot leasers.

This entire property has come up for sale and the deal is happening today. The property is being sold as one unit only and we will subdivide and purchase our own lots after the initial sale. One of the lot lesasers is going to secure the initial loan to purchase the property today and then we are all in agreement we will subdivide and purchase our lots based on an equal split of the original price plus any addition closing costs etc.

What are the tax implications of having one person purchase the entire property and then resell each lot vs. all of us get on the original purchase deed and then subdivide without the need to resell?

Need advice quick..... this is happening today.

Thanks

If you want a guess, if he sells for exactly what he purchased for, there shouldn't be any capital gains tax.

There might be some sort of local tax. Some localities charge a sort of sales tax for transferring real estate.

I'd say there are more than tax questions here.

what's in it for the guy who is purchasing the entire parcel? You say he's getting a loan. He's going to pay the interest out of the goodness of his heart on behalf of the 11 other property owners?

12 potential land owners without something in writing is a disaster waiting to happen - even though the end result hope is probably the same for all involved... hopefully the middle steps to get that end results is smooth.

common driveways? access required by others?

any shared utilities to be concerned with such as sewer?

no sewer? how is the septic handled?

what does the current deed say about the leases? any title issues with subdividing?