Message Font: Serif | Sans-Serif
No. of Recommendations: 1
<<Wife was given property by sister.>>

Ok...sister made a gift to wife. Wife generally retains the same basis and holding period in the asset as sister (assuming the property has increased in value).

<< Property was transferred into sisters name by mother.>>

Depends upon what you mean by "transferred". Likely a gift from mother to sister. Again, sister would retain the same basis and holding period as mother. So, at this point, wife's basis is likely that of mother's original basis and holding period.

<< Sister gave undivided interest to brothers and sisters.>>

Right...but isn't that the same as your opening statement where "wife was given property by sister"? If so, the answer is the same.

<< Wife sold her part back to sister for 10k.>>

Assuming that $10k was the actual FMV of the property, then wife has a valid sale (assuming that there was a profit on the sale. It the property was sold at a loss, the rules are different again).

<<What are tax consequences of selling property.>>

If you have a gain, you report the gain and pay the tax. If you have a loss, you report the loss. If you have a loss when selling property to a "related" party, the rules get complicated, and the loss could be disallowed.

TMF Taxes

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.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.