I'm not sure how to fill out Form 709 Schedule A, column (e) Donor's adjusted basis of gift and column (g) Value at date of gift. I sold my house to my daughter and son-in-law. The contract price was $850,000. However, I told them I was giving them a gift of equity of $350,000. They got a mortgage for $400,000 and paid $100,000 cash. Their appraisal valued my house at $970,000. My adjusted basis in the property at the time of the sale was $598,441. So, do I calculate 970,000 minus 500,000, which equals $470,000, and after the $18,000 annual gift exclusion for each donee, that means I made gifts of equity totaling $434,000. I think that makes sense to me. But what do I use as the donor's adjusted basis for each of the gifts? Is it the adjusted basis for the house or just a portion of the house? I'm confused because it isn't the entire property that I gifted.
