Do I have to pay capitol gains tax on the sale of the house and if so on what basis the total sale minus the gift or does the gift count towards value and not the loan we got?
You'll need to sign in or create an account to connect with an expert.
You Basis is your generally your actual cost. So the paperwork shows a total price of $305,000 (which includes the $105,000 Gift of Equity), your Basis is $200,000.
You Basis is your generally your actual cost. So the paperwork shows a total price of $305,000 (which includes the $105,000 Gift of Equity), your Basis is $200,000.
gift of equity is an accounting gimmick invented by the bank mortgage dept.
Look at the "consideration" shown on the deed you will be filing with the county clerk.
That is your cost basis.
Still have questions?
Make a postDid the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.