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Stephen G.
Stephen G., Sr Income Tax Expert
Category: Tax
Satisfied Customers: 7194
Experience:  Extensive Experience with Tax, Financial & Estate Issues
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My mother gifted her home to me in 2007. She passed away this April and I sold her house r

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My mother gifted her home to me in 2007. She passed away this April and I sold her house recently. The value of the house at the time she deeded it was $84,050 as stated in the new deed to me. I sold the house for $109,500. I was earlier informed that I would have to pay approx. 10% tax on the gain of $23,450 or approx. $2,345, and to expect an form 1099-B. However, at closing I was given a Substitute Form 1099-S and was told this was the same as a 1099-B from the closing agent. Is that correct? (I did not live in the house for the last 45 years)
Submitted: 2 years ago.
Category: Tax
Expert:  Stephen G. replied 2 years ago.
Hello, my name is***** & I'll be helping you today. My goal is to give you a complete & accurate answer that you can understand.
Unfortunately, with a gift, your tax basis for determining gain is the same as the donor's basis, in other words the same as your mother's tax basis.
Can you tell me how and when your mother acquired the home? Was it originally owned jointly by your father and mother? If so, did your father die and then his interest in the home was left to your mother, so she then owned 100% of the property by herself?
If that's the case, when did your father die?
If you can answer my questions, I will be able to provide the information you need to determine the capital gain, if any, on the sale.