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Author: JAFO31 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121341  
Subject: Re: Sail of home Date: 8/22/2001 5:11 PM
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Gargoyle4Elysium: "The house was free to you but you did pay money to fix it up. If the amount you sold the home for is more than your cost of fixing it up (plus any taxes you may have paid on it) then you have a Gain."

This is simply misleading . As a general rule, donees (the recipient of the gift) take the donor's (gift makers) basis. If the property is sold for a loss, then the donee's basis would be the lesser of donor's basis or fmv at time of gift.

"If you had the home in your name for under a year then it is a short term gain.
If you had the home for over a year then it might qualify as a long term gain."


Correct.

To the original poster: If the house was worth more than 10k, then your mother needs (or needed) to file a gift tax return. If you did not live in the house, and your mother did for at least two fo the last five years, I am unsure why she did not sell in order to take advantage of exclusion from capital gains of up to 250k (if you mother was not married at the time of sale) or possibly 500k if your mother was married.

Confused, but not wrong, JAFO




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