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    #1

    Sale Of Home

    Mother put daughter on deed with Mom 25 yrs ago when father died. Home is a 2 family with rental income on other side. Mother (93) has been claiming all rental income on her return as well as all deductible expenses on the side Mom lived in.. Daughter has not lived in house since becoming half owner (when father died). House was sold (Mom still alive). 1099B was issued to Mom and Daughter for 1/2 of the sale price.

    Basis is not an issue in my question.

    Daughter never had any control or "sayso" in anything to do with the house.

    Question: Is there anyway to get around daughter having to report the sales of the house, as she was not a beneficial owner, just in name? During the ownership period it was treated like an incomplete gift.

    I know I'm reaching, but why not try...........................
    Last edited by BOB W; 02-28-2012, 10:00 PM.
    This post is for discussion purposes only and should be verified with other sources before actual use.

    Many times I post additional info on the post, Click on "message board" for updated content.
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    #2
    I believe the gift was completed the moment the house was sold. I also believe the "incomplete gift" only comes into play for an estate. Curious was others have to say.

    Comment

      #3
      I can't imagine any way of starting down this path without reference to local law, which probably means a local tax attorney well-versed in this particular area.

      Comment

        #4
        I just got this in an email from Accountants World

        The New Gift Tax Audits: IRS Identifies Non-Filers Using State Property Records
        http://www.forbes.com/sites/irswatch/2011/10/19/the-new-gift-tax-audits-irs-identifies-non-filers-using-state-property-records/
        Although gift tax audits are historically rare, the IRS has examined hundreds of taxpayers in the last two years whom the IRS suspects made large gifts, yet failed to file the appropriate returns. Borrowing from techniques long employed to identify noncompliant taxpayers in the income tax context, the IRS is using records obtained from third parties—namely, land records maintained in state and county offices—to root out intra-family land transfers for little or no consideration.


        The jist is that the IRS is issuing Summons to state agencies in order to obtain information on property gift transfers. It appears that the recepient must now file a form to report the gift if the value/basis exceeds 100K.

        The New Gift Tax Audits: IRS Identifies Non-Filers Using State Property Records
        http://www.forbes.com/sites/irswatch/2011/10/19/the-new-gift-tax-audits-irs-identifies-non-filers-using-state-property-records/
        Although gift tax audits are historically rare, the IRS has examined hundreds of taxpayers in the last two years whom the IRS suspects made large gifts, yet failed to file the appropriate returns. Borrowing from techniques long employed to identify noncompliant taxpayers in the income tax context, the IRS is using records obtained from third parties—namely, land records maintained in state and county offices—to root out intra-family land transfers for little or no consideration.
        Believe nothing you have not personally researched and verified.

        Comment

          #5
          1009B issued. Wasn't it a 1099S. Who got the money? Did mom split the money with the dau or keep all herself? Not that that might make a difference, just wondering.

          Comment

            #6
            Originally posted by Gretel View Post
            I believe the gift was completed the moment the house was sold. I also believe the "incomplete gift" only comes into play for an estate. Curious was others have to say.
            If the mother put the daughter on the deed twenty years ago wouldn't the daughter have had the rights to do with her share of the property anything she wanted to do from the time she went on the deed sans any contract between them that would have prohibited same.

            They probably agreed that the mom would take all the expense/income at the time dad died. I don't think that negates the daughter's legal interest in the property until mom died unless there is a document spelling it all out.
            Believe nothing you have not personally researched and verified.

            Comment

              #7
              Had they waited until Mom died, they would have gotten stepped-up basis for both halves.
              But they did not.
              So, now, Mom gets to exclude (more than likely under $250K) her one-half ownership of personal use side under Section 125. Daughter has to claim gain, if any, on her one half ownership of personal side. BOTH will have to report 1/2 each of gain, if any -- or loss, if any -- on rental side.

              Comment

                #8
                Thank you>>Everybody... I was fishing, but knew better..............was looking for a super tech to come up with some issue/case not known in the normal everyday practice.

                Yes 1099S not 1099B.........

                Mom went into nursing home and had to sell home to pay for a private nursing home. Daughter gets nothing if all money gets used up before Mom dies. SUCKS..........
                Last edited by BOB W; 02-29-2012, 06:19 PM.
                This post is for discussion purposes only and should be verified with other sources before actual use.

                Many times I post additional info on the post, Click on "message board" for updated content.

                Comment

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