twins50 <tbca2007[at]yahoo.com> wrote:

- quote -

Is the friend on the deed to the house or just in a
trust for the value of the house?

Did the friend live in the house as a primary residence
for two of those five years?

With just the information you have provided, my guess
is the woman has made a gift which exceed the annual
maximum gift threshold - probably not a problem. And
the friend has a long-term capital gain.

Dick

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80 year old woman added a friend's name to trust for only a house 5
years before house was sold. The quit claim deed showed the current
principal at the time. Elderly woman out of house but alive. House
was sold. How is this treated for taxes for the portion of friends
interest in the home?

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >