Harry P
Level 1
‎09-05-2022 03:07 PM

Hi Bob, 

I am a layperson. I am getting different answers from the tax guys here. So I posted this question on this forum. Can you please answer these questions for me?

a. For the owner the cost basis is 150+ 35 = $185K. Is this correct? 
 
b. If the owner sells the house for 150+35+250 = $435K, he pays no capital gain tax. Is this correct? 
 
c. If the owner gifts the house and the gift receiver sells the house for 435K in less than say 2 years after the gift, does the gift receiver pay capital gain tax on $0 or $250K?
 
Thank you very much!

 

 

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