My mother sold my brother her home for 400k, 100k of which was a gift of equity. Her adjusted basis of the property is 40k. When reporting the gift on IRS Form 709, do we use 40k for Schedule A, Part 1, column D "Donor's Adjusted Basis of Gift", or should we use 10k (1/4 of 40k) as the 100k gift was 1/4 of the 400k Fair Market Value?
