TaxMonkey
Level 8
12-16-2019
12:53 PM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
The fact that you client gave $400k, doesn't mean that it was spent on the property. What if the property was $375k and the kid pocketed the rest. Or conversely what if the kid kicked in $10k of his own money.
The properties basis is the lower of current FMV or the original purchase price plus improvements less depreciation.