I am in a situation where A. I don’t know how todo my own taxes. And B, 3 different CPA’s have all told me the same thing which is that I have to pay capital gains taxes on an investment property I sold to family with a gift of equity.
Details:
- I originally payed 150k for the house.
- House appraised at 200k when sold.
- My sell price was 175k.
- Gift of equity was 25k.
- Purchase price was 200k.
I’ve repeatedly been told now that I will have to pay capital gains taxes on 50k, and not the 25k I expected and still believe is correct. Why should I have to pay capital gains taxes on money I didn’t actually get? Not only that but everything I have read says that the gift of equity should lower the cost basis of the buyer, which makes me paying capital gains tax on the full 50k difference make even less sense.
How can I make these lazy and uninformed CPA’s see the light?
