We bought home from Mother - it was never her primary residence so I don't think the exclusion would apply in any sort of way (but it was her only mortgage). It Appraised 170K. Sale price 150K (30K of the equity was used as our down payment so our loan was only 120K). She orig bought home for 137K. So
1) is the gift of equity $20k (diff between appraisal and sale price) or the 30K we used as the down payment or both at $50K?
2) Do we only report gift from 1 less the $30K permitted in a year or full gift?
3) Would she pay capital gains on the 13K (diff of sale 150 - 137 original) or not at all since she did not make anything as she gifted us the diff as equity - she got no cash or gain from the sale -it was only just in her name on paper?
You'll need to sign in or create an account to connect with an expert.
1) Yes, she gifted you $20,000
2) You can consider that she gave you each $10,000 (if indeed she did) and no Gift Tax Return is needed
3) She pays tax on the gain, regardless of what money she received or did not receive in hand.
Another expert mentioned that the equity used as down payment of 34K can be considered part of her cost basis?
Yes. You said that $30k of the equity was used for a down payment. and the loan was $120k. Both combined are the $150k basis.
Or, are you saying that the $30k of equity was also a gift and you put down $30k cash as a down payment.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
nm123456789
New Member
scoaste
Returning Member
JQ30
New Member
clien-comcast25
New Member
M Furius Camillus
Level 1
Did 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.