[WSBARP] Cap. Gain Taxes for Real Property

[Craig Gourley]

If it was transferred as a gift then the recipient takes the basis of the Donor.  If these were all transfers for no consideration then I think you have the original basis.  However, if there is a death or death of a spouse in there anywhere its possible a step up in basis may have occurred on a portion.   More specifics would be needed.  Craig

Gourley Law Group
Snohomish Escrow
The Exchange Connection

1002 10th Street / PO Box 1091
Snohomish, WA 98291

360.568.5065
360.568.8092  fax
Craig at glgmail.com<mailto:Craig at glgmail.com>

From: wsbarp-bounces at lists.wsbarppt.com [mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of David Faber
Sent: Thursday, February 25, 2016 12:02 PM
To: wsbarp <wsbarp at lists.wsbarppt.com>
Subject: [WSBARP] Cap. Gain Taxes for Real Property

Client sold real property this year and will need to report capital gains. The real property was purchased in 1972 by a friend of Client, then, a couple years later, quitclaimed to create JTWROS between the original purchaser, Client, and a third individual. In the mid-80s, the original purchaser and the third individual quitclaimed the real property to Client. Client is now attempting to identify her tax basis in the real property on the date of sale.

Basically, did the quitclaim in the 80s establish a new tax basis, in whole or in part? Or is the Client stuck with whatever her tax basis was in the 70s when the JTWROS was established?

Best,
David J. Faber
Faber Feinson PLLC
210 Polk Street, Suite 1
Port Townsend, WA 98368
(360) 379-4110

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