Gift of Equity

Please Help me with your advise:

According to the most recent government appraisal my house is worth 235K. I will be selling it to a friend who have not money for a down payment. I want to give him a give of equity of 50K which should be used as a downpayment. What are the tax implications for me? How and in what part of my 1040 I reflect this gift of equity? confused

Comments(1)

  • DaveT16th February, 2003

    Gifts (whether money or property) are reflected on Form 709, Gift Tax Return.

    Refer to Form 709, 709 Instructions and IRS Publication 950 for details.

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