ok, so i'm having a hard time finding answers to this question - hopefully you guys can help. in a situation where the buyer and seller are related, what are the restrictions on what sale price can be set for a home? say the house is appraised for 190k, and the seller is willing to sell for 150k. is this possible to do without causing interest from the IRS? my basic understanding is that if the house is sold below FMV, that the difference between the sale price and market price can be considered a gift. i also understand that a person can gift up to 12k per year, so in this case if the seller was a married couple, and the buyer was a married couple, could in this situation the house be priced up to 48k below market value without it being considered a gift? this is in texas if it matters. thanks in advance!