| Home  | Our Mission  | About Us   Webinars and Seminar Books   | Join Now  Renew Now  | Seminar Agenda  | Seminars Register |  Printable Brochures |
| Sponsors |     | Benefits |     Annual Filing Season Program |     | Contact Us |     User Help  |    
  Members Only:

| Resources Main Page |
(34 Categories)


Categories Most Frequently Visited:

| Monthly Newsletter |
| Tax Court Cases |
| New Tax Laws |
| IRS Representation  |
| Preparer Aids |
| Affordable Care Act Impact |
| ACA New IRS Forms For 2014, Draft |

| Tax Subject Library |
| Search All Contents | 
| Forum |
| Members Survey |

| Download |
| Tips For Tax Professionals |
| Boost Your Income |

| Tax Practices For Sale |

For Immediate Assistance
To Login

 

ncpeFellowship Discussion Forum
Register Calendar
 
 
 


Reply
  Author   Comment  
Clubfitter

Registered:
Posts: 1
Reply with quote  #1 
My client bought their home from a parent (02-20-15).  The value of the home was $210,000 (appraised) on purchase date.  Contract Sales Price on HUD1 is $210,000.  Seller gave a "Gift of Equity" to my client equal to $44,000.  My client financed the balance of $166,000.  My client now wants to sell that home (only lived in it 4 months. I realize this will be a taxable transaction. hasn't lived in it 2 of the last 5).  My question is what is my clients basis in the home (not concerned with gift tax issues. Parents basis was more than the $44000 Gift of Equity) and because they have lived in it only 4 months does that create any problems?

Would my clients basis be $210,000 (plus improvements etc) or $166,000 (plus improvements etc)?   My opinion is the gift is $44K, and the parents basis is more than $44K thus the gift will be considered as basis to my client. ???  Would some kind of allocation  of seller basis to FMV apply ?????

Thanks in advance for your opinions.
Previous Topic | Next Topic
Print
Reply

Easily create a Forum Website with Website Toolbox.


©2010 NCPE Fellowship. All rights reserved        |Privacy Policy|