Schedule D and/or Form 709

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In 2018, my wife and I, Sold our jointly owned home (of 25 years) to our daughter at a price Under fair market value. Do we use Schedule D on Turbo Tax and/or Form 709-by mail?

Anonymous_Answer

Level 15

tagteam, out of curiosity, since this is effectively a reporting exercise only and since most Americans have estates less than $11.2mm (joint) which is $22,4mm through 2025, what is your opinion if the 709 form is simply not submitted? if the IRS is going to harass for something that won't generate any tax for over 95% of Americans, in any event what is the incentive of filling it out?

DML - what documentation do you have that the market value of the property was $350,000? (if your daughter took out another loan and there is an appraisal from that transaction, that would work)

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NCperson

Level 15

It depends

How far under market value did you sell if for?

If $30k or less then no 709 reporting

If $30k or more then yes 709 reporting

Either way , still have to report the sale with no tax impact if profit was less than $500,000

DMLAuthor

Level 2

Thank you for your reply. Our Home's Fair Market Value is approx. $300,000; our Cost Basis is approx. $200,000. Our Main Home of 25 years was sold to our daughter for $103,000 which was the remaining Mortgage Balance. Using Form 8949 with Box 7 checked & Schedule D --Lines 15, 16, & 21, Turbo Tax results show $ 0. Are we doing this correctly? Also, we will be mailing in Form 709.