Did you sell the property? If not, then there wouldn't be any gains on the property
If you did sell it, then the gift would not be considered complete until the day you had control over the house. So, the day you gained control over the house is the day you would use for the FMV of the house.
You will also need to determine your mothers basis in the house to determine what your actual gain is on the sale.
If the FMV of the property at the time the donor made the gift is less than the donor's adjusted basis, your adjusted basis depends on whether you have a gain or loss when you dispose of the property.
- Your adjusted basis for figuring a gain is the donor's adjusted basis just before the donor made the gift, increased or decreased by any required adjustments to basis while you held the property.
- Your adjusted basis for figuring a loss is the FMV of the property at the time the donor made the gift, increased or decreased by any required adjustments to basis while you held the property.
- Note: If you use the donor's adjusted basis for figuring a gain and get a loss, and then use the FMV for figuring a loss and get a gain, you have neither a gain nor loss on the sale or disposition of the property. What is the basis of property received as a gift?
When a Gift is Not a Gift
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