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If house is deeded to someone with no funds exchanged, and the house is later sold, is that considered a gift or other method, for tax purposes ?
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June 4, 2019
10:16 PM
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Deductions & credits
it is a gift and the donee's basis is the same as that of the donor. The recipient when disposing of the property is subject to gains/ losses computations just like any other asset disposition. If the transaction is between relatives, and within two years of the gift, there are other complications to contend with. So please tell us a bit more about the transaction
June 4, 2019
10:16 PM
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Deductions & credits
Mother bought house in July 2006 then deeded house to two sisters in December 2007, no funds exchanged. Mother had lifetime rights to live in house until her death (Jan 2017). House was sold in Oct 2017 . Two sisters split gross proceeds 50/50. Wanting to make certain the 1099s is reported correctly.
June 4, 2019
10:16 PM
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Deductions & credits
lifetime estate complicates matter. PK will be back with more info. I will see what I find on web..
Disclaimer: Not a tax professional. Information gathered from internet links. Anything dated in June 2019 was posted in prior years and is before the 2019 limits and changes.
June 4, 2019
10:16 PM