My spouse and I bought a home in May 2023. It was not our primary residence. It was purchased with the sole intention of reselling it to our son at a lower cost. (Due to the crazy real estate market, we could purchase with cash and then, once we had the home, he could apply for a mortgage and purchase from us). He purchased it in July 2023, so we owned the home for 2 months. We made no improvements to the home and we did not rent it out or make any money on the home. The difference between what we paid for the home and what he paid for the home is $30,000. We consider it a gift.
We do have a 1099-S form from the real estate transaction. It indicates I must file forms 4797, 6252 and/or schedule d. I do not believe 6252 comes into play because there was nothing to do with installments.
In TurboTax, when I fill out the form for 4797, I am in part II (ordinary gains and losses). It calculates the $30,000 loss, but I can't seem to override the form to show just zero. I'm pretty sure I'm not allowed a tax break because of the gift.
Any thoughts on how to report this correctly to the IRS?
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Excellent! I so appreciate your quick response and understanding of my issue.
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