@curiousminds wrote:
If the gift cannot be used to adjust the buyer’s costs basis (btw earlier on in this thread, like the 2 first responses you referenced, people said this is what you do, which is more evidence of the lack of consensus here)......
The Reg I cited has that embedded in it.
For part sale, part gift (of (property), there is a split basis. The amount the buyer (transferee) paid is "part sale" and becomes part of the cost basis while gain/loss on the part that is a gift is calculated differently depending upon whether there is a gain or a loss.
See https://www.irs.gov/faqs/capital-gains-losses-and-sale-of-home/property-basis-sale-of-home-etc/prope...
[as a side note, @TaxGuyBill is an enrolled agent and has years and years of experience in income tax preparation]
