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phylsam
New Member

I sold property to my son and gave him a gift of equity of 28000 to cover his downpayment. The 1099s I got counts the gift as proceeds. Can I count the gift as a sales expense since part of the proceeds were gifted?

 
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MinhT
Expert Alumni

I sold property to my son and gave him a gift of equity of 28000 to cover his downpayment. The 1099s I got counts the gift as proceeds. Can I count the gift as a sales expense since part of the proceeds were gifted?

No, even if they are reported as proceeds on your 1099-S, the gift of equity is not deductible.

A gift is not deductible for the donor, nor is it taxable for the recipient.

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MinhT
Expert Alumni

I sold property to my son and gave him a gift of equity of 28000 to cover his downpayment. The 1099s I got counts the gift as proceeds. Can I count the gift as a sales expense since part of the proceeds were gifted?

No, even if they are reported as proceeds on your 1099-S, the gift of equity is not deductible.

A gift is not deductible for the donor, nor is it taxable for the recipient.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

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