Tax Law (Questions About Taxes)/sale of dad's condo


My elderly father put his 7 children's names on the title to his condo to keep step children from getting it should he die before their mother.
His condo recently sold, he got the money [about a 50,000 loss] and each of his 7 children are now supposed to get a 1099 of some kind.  
We have no basis in the condo, we received no money. Are we going to have a tax liability?
What is the proper way to handle this for our 2013 taxes?  Is it reported on Sch. E?


Thanks for your question.

Some clarifications.  First, you do have basis in the condo. Your basis is a transferred basis from him.  In other words whatever basis (cost) he had in the condo transferred to you.  

Second, the critical element for tax purposes is not who got the money, but in whose name was the 1099 issued?  That's where the IRS will be looking.

Third, since he lived in it (I presume) and the children allowed him to live in it rent free (again I presume), it is not considered investment or business property. Therefore any loss is not deductible.

If my presumptions are correct, you will not report it on your returns at all.

Hope this helps.

John Stancil, CPA  

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John Stancil, CPA


I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I am Professor Emeritus at Florida Southern College. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a CPA practice, specializing in tax, for over 35 years. I am a member of the National Association of Tax Professionals, The Florida Insititute of CPA's, The NCPE Fellowship. In addition I am a Certified Mentor for SCORE. Visit my website at I also offer seminars and consultations to churches and clergy on their tax issues at Also visit my blog, I am listed on Tax Connections at Prepare and file your own taxes at


I hold a doctorate in Accounting, and am a CPA. My certifications of CIA, CFM, and CMA are inactive. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I have operated a CPA firm for over 37 years and have taught accounting and tax at the college level for over 35 years.

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