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Level 2
posted May 1, 2021 12:10:10 AM

Is Form709 ScheduleA Part1 ColumnD (Donor’s adjusted basis of gift) used at all in Tax Computation? Or is it just a reference for IRS in case the donee sells the gift?

I filed a quitclaim and gave my share (50%) of the house to my mother.  The adjusted basis of gift is the half of the purchase price.  Did I make a mistake or is this value not used anywhere on Form 709?

Does IRS want me to enter this adjusted basis solely for their future reference in checking my mother's capital gain if she sells the house?  What's the purpose of this value?

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1 Best answer
Level 15
May 1, 2021 7:33:25 AM

@Justin9 wrote:
Does IRS want me to enter this adjusted basis solely for their future reference in checking my mother's capital gain if she sells the house?

Yes. The donee typically takes the donor's basis (a carryover basis) with respect to a future disposition of the gifted property,

2 Replies
Level 15
May 1, 2021 7:33:25 AM

@Justin9 wrote:
Does IRS want me to enter this adjusted basis solely for their future reference in checking my mother's capital gain if she sells the house?

Yes. The donee typically takes the donor's basis (a carryover basis) with respect to a future disposition of the gifted property,

Level 2
May 1, 2021 11:33:22 AM

Thank you for your answer!  I was worried that I may have made a calculation mistake because I couldn't find anywhere to use Column D after it was entered.  It's good to know that Column D is not supposed to be used in the tax computation on this form.