TaxGuyBill
Level 15
04-21-2021
09:37 AM
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@kabbabkkg wrote:
I have a client who has sold a rental property that was never rented
The 40,000 is added to the basis to increase the basis correct?
The gift equity is the amount of a discount on the sale price and reduce the sales price of the property?
Huh?
Yes.
Yes, but as was mentioned, if there is a 1099-S you may want to shift that amount to selling costs or Basis to avoid an IRS notice.