What is the name of your state (only U.S. law)? Indiana
I'm trying to determine if capital gains taxes apply in this situation, and my mind is spinning in circles.. think I'm over analyzing, and need someone to help me stop it!
Deed for house was issued in 1973 at a cost of $34,000. Since that point an additonal $20,00 of improvements were made.. new garage, furnace, roofing, windows, siding, etc. In 2001 a quit claim deed was issued for two children. In 2008, the house was listed on the market for $55,900. One of the children bought out the other, and gave $27,000 as buy out.
Is that since that is HALF the value of the original basis; does this wash? and how is that portrayed in the tax filing area?
Thanks so much for any guidance!
WABTCZN
I'm trying to determine if capital gains taxes apply in this situation, and my mind is spinning in circles.. think I'm over analyzing, and need someone to help me stop it!
Deed for house was issued in 1973 at a cost of $34,000. Since that point an additonal $20,00 of improvements were made.. new garage, furnace, roofing, windows, siding, etc. In 2001 a quit claim deed was issued for two children. In 2008, the house was listed on the market for $55,900. One of the children bought out the other, and gave $27,000 as buy out.
Is that since that is HALF the value of the original basis; does this wash? and how is that portrayed in the tax filing area?
Thanks so much for any guidance!
WABTCZN