DEAR BOB: I sold my principal residence to my daughter in 2006, using gift equity. The loan officer structured the loan as a $400,000 purchase price with a $307,000 mortgage. My question is will I owe taxes on the $93,000? I owned and lived in the house for four years --Perie L. DEAR PERIE: If the home was your principal residence at least 24 of the last 60 months before its sale to your daughter, then up to $250,000 of your capital gain is tax-free. Purchase Bob Bruss reports online. Although your letter is a bit confusing, it sounds like you received the $307,000 mortgage proceeds and gave your daughter a gift of the $93,000 equity. Because that gift amount exceeds the annual $12,000 tax-free gift exemption amount per donor, you must file a federal gift tax return. But no gift tax will be due if your total nonexempt lifetime gifts are less than $1 million. When you die, your total lifetime nonexempt gifts up to $1 million will be subtracted from your federal estate tax exemption...
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