How much income tax ?

[Bearstain]

What is the name of your state? What is the name of your state? Live in Washington State, head of household,no deductions,single,10,183ssa income .sold gifted property for 50,000 ,no other income money. 12%on 60,183 be correct?any place to be calculated on web?

 

[adjusterjack]

Your tax basis on gifted property is what the giver paid for it when they got it. Also depends on how long you held the property before you sold it.

I suggest you go to the IRS website and get the 1040 forms and instructions along with Schedule D - Capital Gains and the instructions.

It's not that difficult. Just follow the instructions. If you sold it in 2021 the instructions will prepare you for filing next year.

Oh, the sale might make some of your SS taxable. There's a worksheet on Page 30 that will help you figure it out.

https://www.irs.gov/pub/irs-pdf/i1040gi.pdf

 

[Bearstain]

Have owned 3years

 

[Bearstain]

7300 paid by giver

 

[Taxing Matters]

sold gifted property for 50,000

You are taxed only on the gain that was recognized. Your gain is the difference between the net sales price of the property (gross sales price less selling expenses) and your basis in the property. If this was a gift given to you during the lifetime of the donor then your starting basis in the property is the lesser of (1) the basis that the person who gave it to you had in it or (2) the fair market value (FMV) of the property when it was given you. If instead you inherited the property then your basis is the FMV of the property on the date the decedent died. There may be other adjustments to basis depending on what you did with it after you got it. The tax rate on the gain will depend on what kind of asset this was and how long you held it.

Note that if it was a gift and you don't know or can't prove the basis the donor had in it then the basis is presumed to be zero.

 

[davew9128]

Your tax basis on gifted property is what the giver paid for it when they got it.

That's....not entirely accurate. Speaking as someone who saw the question on both the EA and US Tax Court exams.