Agent

How a real estate gift becomes a lose-lose situation

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DEAR BOB: About 10 years ago, my parents gave me a gift deed to their house for which they paid about $57,000 many years earlier. Today, it is worth around $275,000. They continued living in it ever since. Now they want me to sell it so they can use the money to move to Florida and buy a small house. I've been paying the property taxes and repairs on the house all these years, and it doesn't seem fair that I should have to sell the house. Would I owe any tax on this sale? --David R. DEAR DAVID: Yes. Your situation is another bad example of why it usually is not smart for parents to gift real estate to their adult children. Purchase Bob Bruss reports online. Frankly, I am surprised that after letting your parents live in the house they gave you and paying its expenses, they want you to sell it and give them the money to move to Florida. To make matters worse, as the donee of their gift deed, you took over their low $57,000 adjusted cost basis. Your taxable capital gain will be the appr...