Hello - I'm considering selling a share of an investment property that I own to a family member in order to pay off the mortgage. How do I figure out my cost basis to determine what the capital gain is assuming I don't get a tax form for the transaction? For example, let's say the house is worth $700k. I sell half, making my gain $350k. Do I take 50% of the original sale price (let's say $450k, so $225k) and then 50% of the improvement amount ($100k, so $50k) when figuring out the basis and capital gain?
So Net Adjusted Basis would be ($225k original price + $50k improvements - $10k depreciation in this example) = $265k
Capital Gain is $350k sale price - $265k basis - $1k sale costs = $84k?
Is that right? So I'd be on the hook for the 15% of that $84k? And then I'd just enter all that info in the appropriate screens in TurboTax myself?
