My state doesn't have gift tax. At least that's what I read online.
Should I consult a local CPA because I am currently living in another state.
So to understand this correct, the gift portion will be 250k-100k=150k. The sale portion will be the 100k mortgage they assumed. This is the part that will get reported on form 709 right?
For my capital gain/income tax purposes, it would be 150k (original cost) - 40k (appreciation)=110k
so I have gained 100k through getting ride of the loan but lost 110k in value so I have a net loss of (10k) even though I can not claim that loss on my tax return. I won't have any gain so no tax to pay? Where would I report this on turbo tax? and how would I do that?
Is that understanding correct?
