Date: Friday March 10, 2006
Time: 05:30 AM -0800
QUESTION:
I sold my old home place to my son. It appraised at $80000, I sold it to
him for
$72000.00 with a gift of equity of $8000.00, at the suggestion of the banker
loaning him the monies. The gift of equity was typed into the contract as
such but was included on the 1099 the bank sent me. My acccountant tells me
the bank should not have included that on the 1099. I went to the bank to
ask them to revise the 1099 but they refuse to do that. Where do I stand?
Must I pay capital gains for gifting my son $8000.00.
-------------------------------------------------
david ingram replies:
I have been in this business for 43 years and have never heard of such a
thing.
The bank had no right issuing a 1099 and I do not understand why they would
issue it and really do not understand why they would not change it
immediately.
Write to the State Banking authority and complain. Copy it to the bank
president.
In the meantime, either file a 4868 extension or put it on the tax return
and deduct it as an error.
Let me know what happens.
------------------------------------------------------
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