Daughter's gift basis???
Widowed mother gifts personal residence to daughter retaining life estate rights to live there. Property is sold while mother is still living. What is daugher's basis in the property?
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06/30/09 10:12am PDT
Viewed by asker 02/20/10 6:07am PST
Viewed by asker 02/20/10 6:07am PST
5 Replies
Mt Juliet CPA
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06/30/09 5:56pm PDT
Her basis will be the same basis as the mothers basis
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sjrcpa
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06/30/09 5:58pm PDT
Best Answer - Chosen by the Community
The daughter's basis is the mother's basis less the basis attributable to the life estate at the time the gift was made. IRS has dictated the formulas for computing this based on age and interest rates. It should have been computed at the time the gift was made-for gift tax reporting purposes.
The more I know, the more I don't know.
Accountant Man
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07/01/09 5:15am PDT
I concur with sjrcpa.
If you use Pro Series Basic I might not be able to help you. If you use Turbo Tax I might refuse to help you. All others, watch out! ;-)
Mt Juliet CPA
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07/03/09 2:51pm PDT
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I stand corrected and agree with sjrcpa and Accountant man, please excuse my inaccurate response
I salute all our current Military and our Veterans.
