Tracy

Zeke, You are correct, there is no sale of property. So, no need for Schedule D reporting. The client's "friend who is a CPA" suggested to the client to take a wait & see approach to the 709 filing. (Probably in an attempt of: don't mention it / don't get caught / don't use part of your lifetime unified credit.) Thanks for your input. Tracy

I have a client "giving" an interest in real estate to a parent. Would the IRS view this as a gift, thus requiring filing of Form 709? (The current market value of the interest is $200,000 which is $175,000 above basis.) If my client doesn't file the 709 within the following year (as required) is it possible to file this at a later time? Would a later filing result in penalty assessment? I have not previously worked with gifts over the annual limits. So, any insights would be appreciated. Thanks!