[WSBARP] Capital gain tax on gift of equity

[Roger Hawkes]

Not when the gift is made; but giftee takes giftor’s basis; so when later sold or tradedthe 20k would be part of the capital gain calculation.

Roger Hawkes, WSBA # 5173
Shoreline Office: 19944 Ballinger Way NE
                                Shoreline, WA 98155
Sultan Office:        423 Main
                                 Sultan, WA 98294

Phone: 206 367 5000; fax: 206 367 4005
Email: roger at law-hawks.com<mailto:roger at law-hawks.com>
Web site: www.hawkeslawfirm.com<http://www.hawkeslawfirm.com/>
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From: wsbarp-bounces at lists.wsbarppt.com <wsbarp-bounces at lists.wsbarppt.com> On Behalf Of Craig Blackmon
Sent: Tuesday, April 20, 2021 4:57 PM
To: WSBA Real Property List Serve <wsbarp at lists.wsbarppt.com>
Subject: [WSBARP] Capital gain tax on gift of equity

'Mates, seller gifts $20k in equity to buyer. Does the seller owe capital gains tax on that $20k?

Thanks for any insight you can provide.

Craig
Craig Blackmon, Attorney at Law<https://www.mywsba.org/PersonifyEbusiness/LegalDirectory/LegalProfile.aspx?Usr_ID=000000029240>
92 Lenora St. #8, Seattle WA  98121
Office/Cell: (206) 369-5949
On the blog: How to Read (and Understand) a Title Report<http://seattlepropertylawyer.com/blog/how-to-read-and-understand-a-title-report>
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