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brummage6
New Member

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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pk
Level 13
Level 13

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 ?

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

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3 Replies
pk
Level 13
Level 13

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 ?

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

brummage6
New Member

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 ?

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.
Bees
Level 7

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 ?

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.

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