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Cap Gains

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Mom gave her son her home for free in 2018. Mom lived in house for 15 years. Son sold the house for $250,000 in 2019. Is there cap gains? What is sons basis?

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IRonMaNAnswer

Level 15

Son's basis is equal to whatever mom's basis was plus any improvements he might have made.

Slava Ukraini!

IRonMaNAnswer

Level 15

Son's basis is equal to whatever mom's basis was plus any improvements he might have made.

Slava Ukraini!

abctax55

Level 15

I'd do a bit of research on "life estate", using ALL of the info/facts you have on the situation to determine the basis.

HumanKind... Be Both

Camp1040

Level 10

If it is a life estate and the mom is still alive, then much research is required as you noted. If it is a life estate and mom died before the sale,then the remainder man of the life estate would get a stepped up basis.

Accountant-Man

Level 13

When did mom stop living in the house?

** I am "Elevating with Intention!"

J

jckerr11Author

Level 2

Mom moved out in June of 2018 and the house was sold in October of 2019

IRonMaN

Level 15

So mom moved out and upon doing so gave the house to son? You then have potential capital gains based on selling price less mom's basis, closing costs, and any money son put into the house.

Slava Ukraini!

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