Parent put 3 children on deed as joint owner in 2001.
Purchased property in 1999 for $83000
Sold 2012 for 69000.
what basis do the kids use and can they deduct their portion of loss on schedule D?
parents home sale - child joint owner
Apr 01, 2013
2 Replies
If this was the parents' (or any of the kids') home, then there is no deduction.
To determine the childrens' basis is is necessary to know the fair market value of the property on the date of the gift as each childs' percentage share of ownership.
Why? The mere fact of adding the names does not mean that the children were actually given an ownership interest. Maybe it was just to avoid probate. Did the parent file a gift tax return as the 25% interest to each child exceeds the annual gift tax exclusion?
What kind of property? Personal use property, rental property, business property, investment property?
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