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If Andrew sells the house for $120,000, he will have a $20,000 gain because he must use the donor’s adjusted foundation ($100,000) at the time of the present as his foundation to figure the achieve. The following are some of the settlement charges and shutting prices that you could include within the original basis of your house. You owned the house in 2023 for 243 days , so you can take a tax deduction on your 2024 return of $946 [(243 ÷ 365) × $1,425] paid in 2024 for 2023. You add the remaining $479 ($1,425 − $946) of taxes paid in 2024 to the cost of your house.
