parvitstax
Level 7

Home Sale : $430k on 1099-S

Seller's Cost Basis : $150k

Gift of Equity : $170k 

 

Is the gift of equity an increase to the Seller's Basis? $320k total - $430k = $110k gain? I've read a handful of posts already and still remain confused how this could affect cost basis (if at all). 

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