I agree it sounds like the regs are in understanding of our position but the regs don’t tell you how to properly file your taxes so that the seller doesn’t end up paying capital gains on the gains in addition to their gift of equity. You told me to see the first posts for answers to my question, you’re telling me that TaxGuyBill knows what he’s talking about but you’re not acknowledging all of these people are saying that the seller should adjust their cost basis or include the gift of equity into their selling costs to accurately reflect what gains the seller actually received, in fact it sounds like you are saying explicitly, that is not what you do. And for that reason you are giving very confusing advice.
