Sale of house gifted to daug and son in law

[photoman]

Sale of house gifted to daug and son in law
I have a tp and spouse that in 2010 the spouse mother gave the home she lived in to daug and son in law. No money exchanged hands. The only paperwork that existed was the deed transfer. The mother lived in the house free until nov 2013 when it was sold. Mother owned the house for 7 yrs and paid 149000 for it and made no improvements. The fmv on date given to daug in 2010 was 150000 and the saleprice of the home in 2013 was 153000 less 9000 in closing cost.
Any ideas of the best was to handle this.
Thanks, Ron

[DonB]

I would report it as a sale of a personal asset with no loss allowed. Since there is no gain, 153,000 -9,000 -149,000; no problem in my mind. TP basis is mother's basis and sec. 121 exclusion is not needed and does not apply since they did not live there 2 years in the last 5.

[photoman]

Thanks for the information