Was this house a gift?


G

G Burton

My mother filed a quitclaim deed to add me as a joint tenant on her
house in 1996. She sold the house this year. She also turned over her cash
to me this year. My wife and I are taking care of her now and she is living
with us.

I understand that I must file a form 709 on her 2007 return for the cash
she turned over to me this year, and I must file a schedule D on my own 2007
return for the my share of the capitol gains on the sale of the house. No
Schedule D is required on her portion of the gains. My remaining question
is this:

When she declared me a joint tenant in 1996, was that technically a gift
to me? She did not file a form 709 in 1996. If it was a gift, what is the
best way to handle it now?
 
P

Paul Thomas, CPA

G Burton said:
My mother filed a quitclaim deed to add me as a joint tenant on her
house in 1996. She sold the house this year. She also turned over her
cash
to me this year. My wife and I are taking care of her now and she is
living
with us.

I understand that I must file a form 709 on her 2007 return for the
cash
she turned over to me this year, and I must file a schedule D on my own
2007
return for the my share of the capitol gains on the sale of the house. No
Schedule D is required on her portion of the gains. My remaining question
is this:

When she declared me a joint tenant in 1996, was that technically a
gift
to me? She did not file a form 709 in 1996. If it was a gift, what is
the
best way to handle it now?


It doesn't smell like a gift of present interest, in that, you couldn't have
done anything with your share of the house, like move in, rent it, or sell
it, without the big ol' nod from mom giving her approval first.

At best it was a gift of future interest, which was just now completed.

I suggest you and her seek the guidance of a CPA or EA in your area to
assist you both in the best way to report and file your returns. That may
entail filing extensions all around and getting on it before the end of
April.
 
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G

G Burton

Thank you very much, Paul. Your answer makes a lot of sense and I
believe it is correct, but I will take your advice and see a CPA anyway.
 

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