Marc-TaxMan
Level 8
12-07-2019
02:16 AM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
IRS considers it 2 transactions: part sale (with proportional basis); part gift with carryover basis.
Assuming full value is $320,000 IRS considers approx 75% to be a sale (of 75% of their basis) and 25% to be a gift.
The 75% purchased gets new basis to purchaser; the 25% gift gets carryover basis to donee.