Client gave his son $400,000 to buy property, with the condition (only with a handshake) that son would transfer property to my client at a later date. At the time my client could not go out of town to do paperwork of buying property, and to get the property, it had to be bought right away was the reason for son putting it in his name. They had planned on doing the transfer in a month or so, which turned out to be about two plus years later. My thinking is no 709 is due by my client as there were conditions on the money he gave to son (even if not in writing) Now the plot thickens 🙂 Son rented said property, and filed schedule E in 2017 and 2018. In November 2019 title was put in my clients name, and he wants to continue to rent it. My thinking is my clients basis will be $400000, because that is the amount paid for the property in 2017, am i correct in my thinking about the 709 and basis.