Originally Posted by justapuddle
Well it wasn't a primary residence. and it was only the mobile home that was sold and removed from the land. i still have the land. My biggest question in how to claim it is since i acquired the title through a bonded title process, i did not pay any individual for the building. i just legally claimed it, then legally sold it within 1 month of getting the title.
It did sell at less than assessed value, but since i didnt live in it and other than legal fees didn't pay for it, the amount i received is all profit so would count as income. does that sound about right?
When you sell the home, you need to calculate your gain or loss by taking the sales proceeds and deducting the selling expenses. Once you have done that step, you then deduct your basis in the home to determine whether you have a gain or loss
If the deedwas used to gift the home to you, then, your basis for tax is;its adjusted basis if the fmv of the home is more than its adjusted basis gifted to you; If the donor bought the property, then there is your starting point. You are going to need to find a way to figure out what he paid for it. You can research the property records at the courthouse and see if the sale was recorded.
If the donor inherited the property, then . generally the donor?s basis is stepped up to the date-of-death value. If the FMV of the property at the time of the gift was less than the donor's adjusted basis, your basis for gain on its sale or other disposition is the same as the donor's adjusted basis, plus or minus any required adjustments to basis during the period you held the property. A different rule applies if you sell gifted property at a loss. If the FMV of the property at the time of the gift was less than the donor's adjusted basis, your basis for loss on its sale or other disposition is its FMV at the time of the gift, plus or minus any required adjustments to basis during the period you held the property. In other words, for purposes of determining losses, you use the lesser of the donor's adjusted basis or the FMV at the time of the gift as your basis.for purposes of gains, you need to use the adjusted basis that is higher than FMV.