Welcome back! Ask questions, get answers, and join our large community of tax professionals.
cancel
Showing results for 
Search instead for 
Did you mean: 

I have a client who sold her rental property and gifted $14,000 to a family member in order to avoid paying on capital gains. How do I report this on her tax return?

chiodoinc
Level 4
 
0 Cheers

This discussion has been locked. No new contributions can be made. You may start a new discussion here

1 Solution

Accepted Solutions
Just-Lisa-Now-
Level 15
Level 15

Gifts are never deductible for the giver nor includable as income to the receiver.   

They will need to pay taxes on their gains.


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

View solution in original post

0 Cheers
4 Comments 4
Just-Lisa-Now-
Level 15
Level 15
Gifts aren't deductible...do you mean they sold to a relative and gave them a gift of equity?

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
0 Cheers
chiodoinc
Level 4
Hi Lisa,  the client sold the rental property and took the profit and gifted it to her mother.  Her thought was if she gifted the profit she wouldn't have to pay on the gain.  Can she deduct the $14,000
0 Cheers
chiodoinc
Level 4
Thank you.  I thought so but needed reassurance that I was thinking correctly.  Appreciate the help.
0 Cheers
Just-Lisa-Now-
Level 15
Level 15

Gifts are never deductible for the giver nor includable as income to the receiver.   

They will need to pay taxes on their gains.


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
0 Cheers