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Reporting sale of house by parents to children proceeds shown on 1099S 180000 basis 83000 105000 gift equity taxable amount $97000 ?

FENER
Level 2
 
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10 Replies 10
IRonMaN
Level 15

Mom and dad didn't live in it for the last 2 out of 5 years?

I'm keeping this job. But I am selling surplus anvils on the side. If you are interested please call 867-5309
abctax55
Level 15

Gift equity is deductible?

Former Chump..umm... AllStar...This message was typed from 6 feet away so you can safely read it immediately.

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IRonMaN
Level 15

The math is a little hard to follow, but it doesn't look like they are deducting it -------- looks more like extra information for us to enjoy in our free time 😁

I'm keeping this job. But I am selling surplus anvils on the side. If you are interested please call 867-5309
abctax55
Level 15

Oh...  I didn't attempt any "hard math".  I'm trying to just use my words today 😉

Former Chump..umm... AllStar...This message was typed from 6 feet away so you can safely read it immediately.

If a post answers your question, click on *Accept as solution* for future searches
sjrcpa
Level 15

You've got a part sale, part gift transaction. Research the treatment. Gift tax return needs to be filed.


ex-AllStar
FENER
Level 2

Do I report the gain from the sale of $97000 on form 4797 as a capital gain ?

besides filing a gift tax return by the parents

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qbteachmt
Level 15

@FENER 

Instead of starting a Duplicate topic, you should have noted here in the existing topic, the new info that the sellers also got $75,000 from the proceeds and that this was a Secondary Residence.

Details matter.

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sjrcpa
Level 15

4797 is for depreciable property used in a trade or business. Was this "secondary" home a rental property? Or was it a personal use second home of the parents?


ex-AllStar
FENER
Level 2

personal use second home for parents

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sjrcpa
Level 15

No 4797. The sale will go on 8949.


ex-AllStar