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Thanks to all for the help. If there's anything else I should consider, definitely do, definitely not do, or if I should "duck and cover" from something, please let me know. I hate it when things like this come out of nowhere and ambush me. While I expect I should be properly grateful for the gift, I would feel more grateful if I had the opportunity to first make sure that it didn't screw up anything in my own planning.

Something you did not mention ... your parents should have incurred some gift tax on this transfer of property. So they should have filed a gift tax return. If they paid any gift tax, a portion of that can be added to your $1 basis. If they did file a gift tax return, your basis amount could change. See a tax professional and tell him or her that you had a part-gift / part-sale transaction. That should point him or her in the right direction.

Again, I have no idea -- my parents are not very finance-literate and if they got this idea from an attorney he may not have even mentioned that aspect to them. I'm sure they would not know on their own, as I did not. Please(!) bring up anything else I should know about. I would rather have had the opportunity to research this stuff before-the-fact than after. I did find the post below and wonder if this applies to me in any way. Do I need to worry about anything but the $1 "price"??? For that matter, I have always assumed that something was either a gift or a sale, but not both. I guess that doesn't have to be true, though I never thought about it before.


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