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emc011075
emc011075, Tax adviser
Category: Tax
Satisfied Customers: 3173
Experience:  IRS licensed Enrolled Agent and tax instructor
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I am being deeded a home and property by my employer as bonus

Customer Question

I am being deeded a home and property by my employer as bonus compensation. What would be my tax liability on the transaction? Also, I would like to sell the property to realize the gain for other purposes. Once I sold the propoerty, what would be the cost basis for capital gains tax?
Submitted: 2 years ago.
Category: Tax
Expert:  emc011075 replied 2 years ago.
Hi. My name is ***** ***** I will be happy to help you.If you receive a property as part of compensation or bonus, the amount should be included on your W2 as taxable income. For example if you employer owes you 50K but instead of paying you cash/check he will give you a property, 50K should be included on your W2 as your taxable income. This will also become your basis for calculating capital gains when you sell the property.If your employer and you didn't agree on specific bonus amount, than the fair market value of the property received should be included as part of your compensation.Let me know if you have any questions.
Customer: replied 2 years ago.
OK thanks, ***** ***** it!
Expert:  emc011075 replied 2 years ago.
You're welcome. Is there anything else I can help you with today?
Expert:  emc011075 replied 2 years ago.
And if this answered your question, please take a moment to rate my response so that I may receive credit for assisting you today. However, if you need clarification, or want to discuss this issue further, let me know. Thank you.