[WSBARP] who pays the tax on gain?

[Kary Krismer]

Thanks.  BTW, I had this issue come up last month but I represented the 
buyers so I didn't dig into it.  My only concern was getting the parents 
to sign the FIRPTA because the kids had thought they already had done a 
QCD beforehand and the parents were not listed as sellers (and the 
listing agent apparently didn't check before listing).

I really with the NWMLS would make an preliminary commitment attached to 
the listing mandatory.

Kary L. Krismer
206 723-2148

On 4/10/2021 7:29 PM, John J. Sullivan wrote:
> 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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