Date Acquired on the sale of a gifted house?

[athaureaux6]

 Good morning online community, 

For the sale of a home given as a gift, what is the Date Acquired? I know for an inherited house we entered "inherited" but if a house is sold but it was gifted, what is the Date acquired. I have read conflicting information about this. Any comments will be appreciated. Thanks . 

[BobKamman]

Where have you read conflicting information?  I'm always curious about what sources led others to ask here instead.  IRS says "If you receive a gift of property and your basis in it is figured using the donor's basis, your holding period includes the donor's holding period."  Maybe the conflicting information depends on whether the basis is that of the donor, or the (lower) FMV when the gift was received.  

[athaureaux6]

Thank you Bob, I was referring when you enter it in the 8949. Some articles I read dealt with using what you said about the holding period, (the date acquired by the donor) but in many cases, and I was referring to that in particular, people never asked the donor when they acquire the property. Some people were saying to write "Various" . That was what I was trying to ask. But anyway, thank you for answering. 

[Just-Lisa-Now-]

If it was gifted, what date did they get the gift?

[BobKamman]

I can see where there may be some uncertainty about the donor's date of acquisition when the gift is a fruitcake, but you asked about a home.  How many people accept real estate without knowing how long their benefactor owned it?  And that's always public record, and most deeds are online these days. 

The Form 8949 instructions are silent about what to enter as acquisition date for a gift.  I think it's safe to use the date that determines whether it is short term or long term.  

[rbynaker]

Usually the bigger mystery is what is the adjusted basis?  (But maybe that's tomorrow's question.)  As Bob said, you can usually find the original purchase date online and you might even find the date of the gift/transfer.  If you're lucky you'll find the original purchase price (but that won't include any closing costs, seller incentives, subsequent improvements, accumulated depreciation, suspended PALs, etc.)

You're probably "stepping into the shoes" of the giver.  I'm sure they included a copy of the gift tax return that was filed reporting the adjusted basis of the gift, right?  As long as the FMV on date of gift was higher than the adjusted basis then you'll use adjusted basis as the starting point of "stepped into the shoes" basis for the gain/loss math (in which case I would use the original purchase date as date acquired on the 8949).

If the FMV on date of gift was lower than adjusted basis then you end up with what I call the "neutral zone".  Basis for loss is FMV on date of gift, basis for gain is adjusted basis.  Anything in between results in no gain/loss.

With real estate you're probably only looking at gains but we have no idea the timeline or numbers you're dealing with.  Either way I wouldn't stress too much about it, it's more important to get the correct tax treatment (LT/ST) than to figure out which specific date goes in the box.

Rick