Can I use loans made to wife before marriage to reduce capital gains?

#1 02-04-2005, 04:31 AM

beachboy_1013[at]yahoo.com wrote:

- quote -

> Starting in 1992, my girlfriend had a series of heart
> attacks. She had no insurance, and was unable to work, and
> over the following seven years I made seven loans to her
> totaling $165,000. We married in 1999 and in 2002 she signed
> over 50% ownership of a house she owned with her mother, as
> payment of the seven loans. In 2004 I sold this 50%
> ownership of the house for $200,000. Can I use the $165,000
> of loans made to my wife when she was my girlfriend as the
> purchase price of the half interest in the house in order to
> reduce my capital gains tax?

You are either the same person as creativecopy[at]yahoo.com or
you are in his class at school. Either way, this question
has already been asked on this group. Try a search in Google
Groups.

--
Alan
http://taxtopics.net

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02-04-2005, 04:31 AM

beachboy_1013[at]yahoo.com wrote:

- quote -

> Can I use the $165,000
> of loans made to my wife when she was my girlfriend as the
> purchase price of the half interest in the house in order to
> reduce my capital gains tax?

Had you and your wife made that exchange PRIOR to marriage,
the answer would probably be "yes." However, once married,
transactions between spouses are generally view as "gifts"
with no tax consequence. Your "basis" in the half interest
of the house sold would be equal to your wife's basis at the
time she gave it to you.

MTW

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#-1 02-03-2005, 05:08 PM

Starting in 1992, my girlfriend had a series of heart
attacks. She had no insurance, and was unable to work, and
over the following seven years I made seven loans to her
totaling $165,000. We married in 1999 and in 2002 she signed
over 50% ownership of a house she owned with her mother, as
payment of the seven loans. In 2004 I sold this 50%
ownership of the house for $200,000. Can I use the $165,000
of loans made to my wife when she was my girlfriend as the
purchase price of the half interest in the house in order to
reduce my capital gains tax?

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

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