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I own a home with another person and he is buying me out. I will receive 11k as a gift and 27k for the house. What will I be taxed on and how much?

Submitted: 2027 days and 16 hours ago.

Category: Tax

Value: $1

Status: AWAITING CUSTOMER ACTION

Your portion of the adjusted basis of the home subtracted from the 27K sales price will be your capital gain/loss. If you owned and lived in the home for at least 2 years of the 5 year period prior to the sale date, you may not report the sale on your return at all. You may be eligible to exclude up to 250K of capital gain.

Be sure to show the sales price as 27K on the sales agreement. The 11K gift must not come into play with the sale in any manner.

Sale at less than fair market value to a related party may also have other restrictions to consider.

Accepts:
Expert:	Sandi Hargrove, SkyHawks
Pos. Feedback:	98.8 %
Answered:	5/5/2004

Master Tax Advisor, Enrolled Agent

I am a Master Tax Advisor and Enrolled Agent. I have 40 years experience. Trucking specialist.

Posted by T. R. Miller, The SunTaxMan 2026 days and 22 hours ago.

Info Request

Why are you receiving the 11k gift and from whom? From the same person who is buying the house? Are you related?

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Question

I own a home with another person and he is buying me out. I will receive 11k as a gift and 27k for the house. What will I be taxed on and how much?

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Info Request

Why are you receiving the 11k gift and from whom? From the same person who is buying the house? Are you related?

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