Question
I have a client who inherited a house with his sister in 2019. They sold the house in 2024 and my client had the proceeds given to his sister.
I would like to file a gift tax return for my client giving his sister half the value of the house before selling it. On the gift tax return his share of the value is $204,500. When he inherited it his basis was $131,850. Will he owe tax on the difference between the value and the basis? Thank you.
