DMarkM1
Expert Alumni

Deductions & credits

Your basis was not affected by the tax payments.  The Publication 551 reference is for the buyer of the property to add to their basis if they paid taxes for the seller in the real estate transaction.  

 

In your situation the other beneficiaries can gift/give you money to repay your real estate tax payments over the years which will not be taxable to you and assuming the amount of each gift is below the annual reporting threshold ($17,000 for 2023) they will not need to be reported on gift tax returns by the donors. 

 

Here is a link with more information on gift giving.        

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