Yes, your cost basis would be what your mother paid for the house because it was a gift to you. Since the house was yours by gift you should report the full sale price on your tax return. The fact that part of the proceeds when to your mother as a 'gift' does not affect her tax return and doesn't reduce the proceeds from the sale for you.
Because her gift is below the amount for filing a gift tax return in 2024 ($18,000), there is nothing to report for her $15,000. The 1099-S should have reported the entire sale proceeds to you. Tenancy rights gave her the right to live there and provided some type of financial arrangement at the time of sale based on your comments. This does not change the reporting of the sale since you owned the property.
Report the sale using the steps below.
To enter your sale in TurboTax, follow these steps. Click this link for more information. Where do I enter Investment Sales?
- Open or continue your return.
- Navigate to the investment sales section:
- TurboTax Online/Mobile: Go to investment sales. If using this application, make sure it is open
- TurboTax Desktop: Search for investment sales and then select the Jump to link.
- Or Personal Tab > Continue > I'll choose what I work on > Scroll to Investment Income > Select Stocks, Cryptocurrency, Mutual Funds, Bonds, Other
- Answer Yes to the question Did you sell any of these investments in 2024? (or Okay! to Time to kickoff your investments!).
- If you land on the Investment sales summary or Your investments and savings screen, select Add More Sales or Add investments.
@TANMACK
[Edited: 02/18/2025 | 5:56 AM PST]
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