Question

How do I fill out gift tax form 709, Schedule A? I gave son a gift of equity of $158,550 so he could buy my house at 317K. Appraised value $320K. My purchase price 73,150

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Employee

The short answer is it would be the fair market value of the gift, which is the FMV of the house less any and all encumbrances (e.g., mortgage(s)).

So what number would I put as the donors adjusted basis of gift, and what number would I put for the value of the gift (on Schedule A)?

Employee

Your cost basis plus any improvements less any casualty losses deducted (in the past).

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