[WSBARP] who pays the tax on gain?

[John J. Sullivan]

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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