jashaw569
New Member

Can we use the gift of equity to minimize the impact of the capital gain on a home?

We purchased a home for our daughter and her family. Now that their credit is fixed, they want to purchase the home from us. We will be facing a capital gains tax of approximately $28,000. We want to eliminate this gain by a gift of equity $14,000 from me and $14,000 from my wife. Is this possible and how is this reported on our Tax Returns?