Message Font: Serif | Sans-Serif
No. of Recommendations: 0
I agree with PaulEA.

The gift occurred when you received your interest in the property, if at all. The sale of the property is a separate "realization" event. You need to have some professional help to determine what your basis in your interest was.

Because you got the interest most likely as a gift, you would take what is called a carryover basis, i.e. your grandfather's basis. So if his basis was $10,000 and you are getting 10% of the sale proceeds, your basis would be 10% of $10,000 or $1,000.

Unless you were talking to TAX attorneys, listen to the CPA. Most attorneys know very little about taxes, unless they practice in the area.

Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.