Question

Sale of home to son

Forum|Forum|4 years ago
February 7, 2022
2 replies
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Hello,

I built a house in 1995. Lived in it till 2010. My son & his wife moved into it and I moved out. I sold it to them in 2021 for the cost of building it. Do I need to record that sale on 2021 taxes? Thanks, Gene

M

Mike9241

yes you need to report it. and if the Fair Market Value was more than your cost you may have to file a gift tax return. Form 709

Who Must File
In general. If you are a citizen or resident
of the United States, you must file a gift tax
return (whether or not any tax is ultimately
due) in the following situations.
• If you gave gifts to someone in 2021
totaling more than $15,000 (other than to
your spouse), you probably must file Form
709.

LeonardS

From the info in your question, it appears that you have not lived in the home for 2 of the past 5 years. If this is true you will have to report the sale of the house on your tax return.

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