Question about Selling to Insiders

[jgordo52]

I sold my motorcycle today to my brother. It lists on Kelly Blue Book from 10,700 stock to about 11,400 with what I have into it. I owed 10,500 on it. I sold it for 12,500. They won't go after him for the bike since I got fair market value for it, will they? I'm not trying to hide anything, they will see that he gave me some cash and took out a loan for it. Is there anything to worry about?

Thanks,

Jeff

[Flamingo]

Did you pay off the $10,500 you owed on the bike? As long as you have a signed bill of sale, paid off the bike and transferred title correctly, there should be no problem.

[jgordo52]

yes, I have a bill of sale, paid off the bike and transferred the title.

[FreshLikeADaisy]

Jeff, just don't have that money in hand (unspent) when you go to file, esp Ch7. You might also want to put at least a little time between your filing and this transaction; even just a month or two would be better than selling it today and filing tomorrow. That said, as long as you declare it openly on your forms, no, there shouldn't be any problems. Good luck!!!

[rfassett]

"Arms length" transactions with anyone should not be a problem. The problem comes when there is "bargain sales". The trustee may want to look at the transaction but will conclude that it is above board. I take it you don't like your brother very much. Blue book of $11,400 and you sell it to him for $12,500? As Daisy points out, I would make certain that the $2,000 pocketed gets spent - AND HAS A TRAIL!

[jgordo52]

"Arms length" transactions with anyone should not be a problem. The problem comes when there is "bargain sales". The trustee may want to look at the transaction but will conclude that it is above board. I take it you don't like your brother very much. Blue book of $11,400 and you sell it to him for $12,500? As Daisy points out, I would make certain that the $2,000 pocketed gets spent - AND HAS A TRAIL!

I sold it to him at a discount, I have about 7k worth of extras on that thing. It killed me to sell it, but I had to. And I knew that they would only get what it's worth for it and I figured I might as well get something extra. 12,500 was a fair price, with some extras added in for riding too.

Thanks for the answers guys and gals,

Jeff

[rfassett]

OK, Jeff, you just painted a completely different picture. You either sold it to him at an arms lenght price or you sold it to him at a discount, you didn't do both. You would be wise to not tell the trustee what you just posted here. Repeat after me, Jeff, I did not sell it at a discount. I did NOT sell it at a discount. I DID NOT SELL IT AT A DISCOUNT!

[FreshLikeADaisy]

*laugh!!!*

Good one, Rfasset!

Jeff, you'd do well to listen to this and, yeah, repeat after RFassett as many times as it takes...

[jgordo52]

*laugh!!!*

Good one, Rfasset!

Jeff, you'd do well to listen to this and, yeah, repeat after RFassett as many times as it takes...

I've been saying it all morning and afternoon and just can't get it down yet, more to come...