My situation was that I owned only 25% of the home and therefore was only paid a little less than (minus fees and missed payments) that 25% for my share.
example: home is worth $1,000,000 and I own 25% share. I received $220,000 (25% or $250,000-$30,000 fees/missed payments)
Therefore, technically I did receive full money for my share of the home.???..(receive full compensation for the property that’s been given)
But it is less than the property's full value since property is worth $1,000,000. (receive compensation that’s less than the property's full value)
I appreciate your time and response.
I was reading this link https://turbotax.intuit.com/tax-tips/estates/the-gift-tax-made-simple/L5tGWVC8N
What is the gift tax?
The gift tax is a federal tax that the IRS imposes on people that gift property. The gift tax is applicable when you receive nothing in exchange, or receive compensation that’s less than the property's full value.
This can include, but isn’t limited to:
- Cash
- Real estate
- Art
- Interest-free loans
- Vehicles
Note that whether or not you intend for the property to be a gift, the gift tax applies if you don’t receive full compensation for the property that’s been given.
So I am a little confused.
