Capital Gains and Losses
Questions and comments about tax rules for buying and selling stocks, mutual funds, real estate and other assets.
Cap gains on a partially gifted property
Posted by: 47Percent, October 15, 2017 10:52AM
Could someone please help me with this.

A couple (A) purchased a property for 180K; after a few years of rental depreciation the cost basis was at $160K. Then 20% was gifted to another couple (B) when Fair Market Value (assessed) was $250K. An amount of $50K in gift tax exclusion was taken.

Then if the entire property was sold for $300K, with A and B receiving $240K and $60K respectively, what would be the reported Capgains for couple A and couple B.

Thanks..



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