Form 709, Schedule A, Part 1, line 1, column D (Donor’s adjusted basis of gift) and column F (Value at date of gift).

I inherited a property from my father in 2003. The property was appraised at $121,500 at that time for my basis. I have used this property for as a second home and for personal use since that time. I sold this property to my son in 2022 for $115,000, $6500 less than my basis. I received a 1099-S reporting the gross proceeds of $115,000 in box 2. No depreciation ever taken and not claiming any loss. The 2022 current appraisal is $230,000. I believe that I need to report the $99,000 gift of equity on IRS Form 709 (i.e. $115,000 - $16000 annual gift allowance = $99,000)

My question pertains to Form 709, Schedule A, Part 1, line 1, column D (Donor’s adjusted basis of gift) and column F (Value at date of gift). I’m just not certain and a bit unclear about the correct values for these two entries. Any help, advice, and clarification will be appreciated. Thank you.

641

Level 15

Feb 11, 2023 10:05:33 PM

this is an income tax forum since Turbotax does not do gift tax returns. but the info you provided and the

questions are straightforward so

inherited a property from my father in 2003. The property was appraised at $121,500 at that time for my basis.

so that + any subsequent improvements

The 2022 current appraisal is $230,000 Value at date of gift

sold for $115,000

so the gift is $115,000 FMV vs sales price.

Level 2

Feb 14, 2023 6:13:53 AM

Thanks for your reply with regard to IRS Form 709. It was helpful and confirmed the values I referred.

Why sign in to the Community?

Form 709, Schedule A, Part 1, line 1, column D (Donor’s adjusted basis of gift) and column F (Value at date of gift).