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Mother gifted residence to kids

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    Mother gifted residence to kids

    Mom gifted residence to kids, retaining a life estate.

    Now she wants to move in with one kid, selling home.

    There is about a $10,000 gain on the sale.

    If mom reports, no tax, as it is less that $250,000.

    If kids report, maximum tax of 15% on the gain.

    Who reports?
    Jiggers, EA

    #2
    The calculation of each gain is based upon IRC 7520 and Pub 1457. If mother qualifies for the 121 exclusion, she does not report her portion of the gain.

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