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Basis of gifted property

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    Basis of gifted property

    About 10 years ago a man owned a piece of property in southern central Florida. He paid $16,000 for the land that was supposed to be part of a new community. Nothing developed and the land became almost worthless. He could have sold it for about $2000. He had a handicapped child and was seeking help from the state but couldn't get it because he owned this land. So he GAVE it to my client. So his basis of $16,000 became her basis in the land.

    She sold it in 2005 for $24,000 and gave $8000 to the man that gave it to her. Is there any way to add the $8000 to her basis something so that she doesn't have a gain of $8000 on her tax return.

    I probably already know the answer but I thought some of you really smart people out there may have some reasonable argument for this. (She didn't get a 1099 for the $24000.)

    Thanks

    Linda F

    #2
    Sale of gifted land-Gain

    No way that I know of. Client will have to pay tax on gain.

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