bob808
Level 3
‎02-14-2025 06:13 PM
I would like to file a gift tax return for my client giving his sister half the value of the house before selling it. On the gift tax return his share of the value is $204,500. When he inherited it his basis was $131,850. Will he owe tax on the difference between the value and the basis? Thank you.
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BobKamman
Level 15
‎02-14-2025 06:16 PM

If he deeded it to her before the sale, she reports the gain.  If he still owned half when it was sold, he reports his share of the gain. 

Was the house just sitting vacant for five years?  

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sjrcpa
Level 15
‎02-14-2025 08:08 PM

Were any improvements made from date of death til sale?


The more I know the more I don’t know.
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IRonMaN
Level 15
‎02-14-2025 08:47 PM

Did they own any chickens?

Oh wait, scratch that - wrong post.


Slava Ukraini!
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bob808
Level 3
‎02-18-2025 07:10 AM

The sister lived in the house after the parents passed. The brother was not lving there at the time he moved out years before their passing.

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bob808
Level 3
‎02-18-2025 07:11 AM

No improvemnets. The sister lived in the house and has no issue claiming the profit since it was less than the $250,000 exclusion she will get.

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