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Subject:  Re: Selling Home--Tax Hit Avoidance Needed! Date:  9/28/2000  5:57 PM
Author:  v1nc1tr1x Number:  40403 of 123001


You definitely should talk to a professional. You may have received a gift from the relative when s/he made you co-owner, and if s/he died and left you the property, that inheritance would also give you some 'tax basis' in the property. You'll want to know whether a gift was reported originally (to the IRS), and if so, what value was shown for the gift. And if the relative's estate filed an estate tax return, that would show a value for the interest in the house which passed to you on his/her death. (If nothing was reported to the tax authorities, the situation gets a little murkier, but a professional can help you figure out a reasonable position to take.)

The reason you care about the past is that to the extent you have tax basis in the house, you don't have 'gain' on sale. (A simple example: I buy a house for $100,000 and later sell it for $150,000 -- my taxable gain is $50,000, not $150,000. Here, your 'basis' in the property will reflect the circumstances in which you received it -- a gift and a bequest, it appears.) So i