[WSBARP] who pays the tax on gain?
John J. Sullivan
sullaw at comcast.net
Sat Apr 10 19:29:09 PDT 2021
The 1099 is mechanical. In this case a week might suffice. Just an old tax attorney habit to create some breathing room between steps to avoid the IRS’s “step transaction” analysis.
I say a week because if mom really has no equity interest the risk would seem pretty remote.
John Sullivan.
Sent from my iPhone
> On Apr 10, 2021, at 7:19 PM, Kary Krismer <Krismer at comcast.net> wrote:
>
>
> On 4/10/2021 6:46 PM, John J. Sullivan, Esq. wrote:
>> Once that’s “old and cold,” the sale by the daughter can close, be reported solely under her SS# on the 1099 and assuming she has fulfilled the ownership and residence rules should be able to apply the full $250K exemption to 100% of the sale. This also eliminates the complications of characterizing it as a gift.
>>
>> John J. Sullivan
>>
> Can you elaborate on aging the deed and how that matters for 1099s? I was unaware of any connection beyond being outside the escrow for sale.
>
> Kary L. Krismer
> 206 723-2148
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