What would tax burden be for gifted house given by mother to me and brother sold for $53K? What tax form do I use?

Forum|Forum|7 years ago
June 5, 2019
1 reply
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Need to know tax burden and IRS form to use

TurboTax Deluxe Windows

Best answer by KittyM

You will have to pay Capital Gains tax rates if you have a gain on the sale and you owned the property for over a year. If you did not, the gain would be taxed at the same rate as your other income. The best way to calculate the tax burden would be to enter the sale in TurboTax.

This sale would be entered in the investment section. To get to this to the section:

In your open Federal return, select Wages & Income
Scroll down to Investment Income and Show more
Start or Revisit Stocks, Mutual Funds, Bonds Other
Answer "No" to "Did you receive a brokerage statement?"
On the page "Choose the type of investment you sold" select the radio button for 'second home' and continue to enter the property information and your proportionate share of the sale proceeds.
On the page "Tell Us How You Acquired This Home" enter how you acquired the home (gift) and continue with the interview. Gain/loss is computed and moved to appropriate form for your proportionate share.

Please see the IRS' FAQ Basis (Value) of a gift for instructions on how to determine the cost basis of your home.

Note: If you received a 1099-S for the sale of the home, make certain the proceeds are recorded for your share only. If not, contact the payer for a corrected form.

KittyMAnswer

Level 10

This sale would be entered in the investment section. To get to this to the section:

In your open Federal return, select Wages & Income
Scroll down to Investment Income and Show more
Start or Revisit Stocks, Mutual Funds, Bonds Other
Answer "No" to "Did you receive a brokerage statement?"
On the page "Choose the type of investment you sold" select the radio button for 'second home' and continue to enter the property information and your proportionate share of the sale proceeds.
On the page "Tell Us How You Acquired This Home" enter how you acquired the home (gift) and continue with the interview. Gain/loss is computed and moved to appropriate form for your proportionate share.

Please see the IRS' FAQ Basis (Value) of a gift for instructions on how to determine the cost basis of your home.

Note: If you received a 1099-S for the sale of the home, make certain the proceeds are recorded for your share only. If not, contact the payer for a corrected form.