Hi Everyone and thanks in advance for your thoughts,

I have a situation I've never encountered before.  So a father and daughter "bought" a property together for $150k, which the daughter has lived in for 4-5 years.  However, because the daughter had a recent foreclosure, the bank didn't want her on any of the paperwork, so the property was in dad's name only.  Daughter paid approx $40k down and made several improvements to the property while living there.  In March of 21, she legally bought the property from her dad for $90k with the remaining $60k considered an equity gift (the closing paperwork even indicates this) for a total of $150k.  This was essentially her buying out her dad's portion.

Unfortunately, she ended up selling the home and moving in Oct for $190,000, which on it's surface creates a taxable gain.  So my question is how do we establish the acquisition date considering the circumstances?  Does the gift, which normally brings it's holding period with it, create a 2+ year ownership period?  Do I treat these as two separate ownership interests?  Obviously trying to shelter her gain as much as possible.  A 1099-S was issued.

Any thoughts are appreciated and thanks again!

Mitch