Question

Receiving gift apt

Forum|Forum|6 years ago
August 13, 2019
1 reply
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My brother has an apartment in US but he lives in overseas, he wants to gift me the apartment value 70k, donO have to ay taxes for that gift? If later I would like sell the apartment, would I have to pay any tax for that sell?

A

Anonymous_

Employee

You do not have to pay any federal income tax on the gift from your brother.

Initially, you will take your brother's basis in the apartment. When you sell, it gets a little more complicated:

Your basis for figuring a gain is the same as the donor's adjusted basis, plus or minus any required adjustments to basis while you held the property.
Your basis for figuring a loss is the FMV of the property when you received the gift, plus or minus any required adjustments to basis while you held the property.

See https://www.irs.gov/faqs/capital-gains-losses-and-sale-of-home/property-basis-sale-of-home-etc/property-basis-sale-of-home-etc

So, you need to keep track of your brother's basis and the fair market value of the property at the time the property was gifted to you.