taxmanrick

Thanks, DANRVAN and Gail! My advice to her is to see an attorney first to get the deed and ownership straightened out, and with the attorney, figure out a sale plan. I'll take over her taxes after all is straightened out. Thank you all again! --Rick

Sorry, CBSLEE. I misunderstood your question. Let me provide some updated info: Here are the UPDATED FACTS: Single family home occupied by Husband (H) and Wife (W) for forty years. They always file a joint tax return. Deed for home shows ownership as W and a COMPLETELY UNRELATED THIRD PART (B). H is not on the deed for irrelevant reasons. B was added to the deed twenty years ago solely to ensure that there were two names on the deed. B has no involvement in the home and does not live there. B DIED LAST MONTH AND LEFT A WIFE, NO KIDS. Home is NOT YET SOLD (ONLY IN THE PLANNING-FOR-SALE STAGE). Per Pub 523, "amount realized" WOULD BE $1,000,000. "Adjusted basis" WOULD BE $100,000 yielding a $900,000 gain. Per Pub 523--Determine whether you meet the ownership requirement: If you owned the home for at least 24 months (2 years) out of the last 5 years leading up to the date of sale (date of the closing), you meet the ownership requirement. For a married couple filing jointly, only one spouse has to meet the ownership requirement. I still have these questions, if you'd like to take a shot at them (ASSUMING A QUIT CLAIM DEED IS ISSUED BY B's ESTATE AND ONLY W REMAINS ON THE DEED): What is the "amount realized" and "adjusted basis" on H and W joint tax return? What is H and W's excluded gain on their joint 1040? SAME QUESTIONS, THIS TIME ASSUMING EITHER B's ESTATE OR B's WIFE REPLACES B ON THE DEED: What is the "amount realized" and "adjusted basis" on H and W joint tax return? What is H and W's excluded gain on their joint 1040? It probably would be best for W to see an attorney and/or CPA to straighten out this mess! Thank you for your help! --Rick

The wife's brother-in-law.

Thank you once again for this excellent forum! Here's a situation I'm wrestling with concerning sale of a personal residence with unusual ownership. Any help that anyone can provide will be much appreciated! Here are the facts: Single family home occupied by Husband (H) and Wife (W) for forty years. They always file a joint tax return. Deed for home shows ownership as W and her brother-in-law (B). H is not on the deed for irrelevant reasons. B was added to the deed twenty years ago solely to ensure that there were two names on the deed. B has no involvement in the home and does not live there. Home is sold. Per Pub 523, "amount realized" is $1,000,000. "Adjusted basis" is $100,000 yielding a $900,000 gain. Questions: What is the "amount realized" and "adjusted basis" on H and W joint tax return? What is H and W's excluded gain on their joint 1040? Thank you for your help! --Rick

Thank you, Abby. Nice to know I'm not alone! --Rick

Folks, I do not use any bank products nor do I wish to. When I am in a return and click the "Check Return" button, there are 36 overrides listed as 1040 EF overrides. How do I resolve this?

Thank you, Abby. $150,000 is what I will use to figure gain/loss on the sale. --Rickc

Thanks, folks! I see both Possi's and Danrvan's suggestions as reasonable. Of course, I like Danrvan's better (sorry Possi!) Is there anyone else out there who would like to weigh in? Thank you. --Rickc

This one should be easy.... Mom, sole owner of a house she lived in, passes away. Her only two children, daughters Abi and Zel, inherit the property. Stepped up basis of the property at death is $150,000. Zel doesn't want anything to do with the house, so she accepts $15,000 in cash from Abi to "buy" Zel's share. The deed is recorded with Abi as the sole owner. At the time the deed is recorded, what is Abi's basis? a) $165,000 b) $150,000 c) $90,000 d) $75,000 e) something else Thanks! --Rickc