Gift Of Equity
I recently purchased my property from my brother and his wife for $330,000. They gave me a gift of equity of $66,000. They originally purchased the property for $190,000. On what amount would they have to pay capital gains tax on?
Asked on 4/10/08, 11:40 pm
1 Answer from Attorneys
Re: Gift Of Equity
They should have an accountant or attorney prepare this return because they will also need to file a gift tax return (Form 709) to report the $66,000.
The gift amount would most likely be treated as a reduction of the purchase price.
This is not legal or tax advise. I strongly advise that you and your brother consult a tax professional who can review all of the relevant documents necessary to provide you with an accurate answer to your question.
Answered on 4/11/08, 12:10 pm
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