Level 3

SALE OF RENTAL

Forum|Forum|2 years ago
September 30, 2023
4 replies
12 views

CLIENT SALES A RENTAL TO DAUGHTER FOR $147,425 DAUGHTER PAYOFF LOAN 65,501 MOTHER GIFT OF EQUITY OF 80,386. IN THE DISPOSTION OF THE PROPERTY WILL THE SALE PRICE BE 147,425 AND A FORM 709 FOR THE GIFT. WHAT ELSE I AM MISSING.

Practice Advice

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sjrcpa

Level 15

Please don't SHOUT.

Is $147,425 Fair Market Value?

The more I know the more I don’t know.

B

BG2Author

Level 3

Yes fair market value.

abctax55

Level 15

"..WHAT ELSE I AM MISSING"

The Caps Lock/Shift key?

HumanKind... Be Both

George4Tacks

Level 15

themathdoesnotwork80386+65501=145887.

Answers are easy. Questions are hard!

B

BG2Author

Level 3

About 1500 in taxes and fees

BobKamman

Level 15

Sounds like she sold it for loan payoff, $65,501. If a gain, taxable. If a loss, not. Form 709 required but no tax due (unless huge prior gifts).

B

BG2Author

Level 3

So sale price is $65,501 is what I should enter.

BobKamman

Level 15

Are you trying to get around a 1099-S that shows a sales price of $145K, because the paperwork had to satisfy the daughter's new mortgage company? I'll let others suggest how to play "trick the IRS computer." When I sign a return, I just enter the facts, and include an attachment that might be needed next year because no one at IRS looked at it.

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