My son Just assumed my mgt. for 193,000 and I executed a quick claim deed what are the tax issues for me on the equity in the home which is approximately $35,000?
The home's cost was $220,000, homes in the area are selling for $235 K to 240 K.
What forms if any do I have to file for my 2017 return?
Your son’s
cost basis is $220,000. The recipient’s cost basis, in a gift, is the giver’s
basis.
You report
nothing, about this transaction, on your income tax return. You did not make a
sale. You made a gift.
"Gift Tax" is somewhat of a
misnomer. Even though a gift tax return is required (your $35,000
gift of equity exceeds the $14,000 filing threshold), very few people ever
actually pay federal gift tax. The purpose of the gift tax return is usually
only to document a reduction in the allowable estate tax exemption. You cannot
do a gift tax return in TurboTax
See https://turbotax.intuit.com/tax-tools/tax-tips/Tax-Planning-and-Checklists/The-Gift-Tax-Made-Simple/...
