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friend given quit claim deed- house sold

80 year old woman added a friend's name to trust for only a house 5 years before house was sold. The quit claim deed showed the current principal at the time. Elderly woman out of house but alive. House was sold. How is this treated for taxes for the portion of friends interest in the home?
Reply to
twins50
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Is the friend on the deed to the house or just in a trust for the value of the house?

Did the friend live in the house as a primary residence for two of those five years?

With just the information you have provided, my guess is the woman has made a gift which exceed the annual maximum gift threshold - probably not a problem. And the friend has a long-term capital gain.

Dick

Reply to
Dick Adams

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