Many people do not realize that they may need to pay...Read more
Yes. When you receive property as a gift, you receive it with the same tax basis as the person who gave it to you, often referred to as a “carry-over” basis. And, since it’s not your primary residence, you may not exclude the first $250,000 of gain.
Capital gain is the difference between the "basis" in property and its selling price. The federal tax rate is 15 percent unless you have either very low or very high income, and you can look up your state tax rate. Learn more about how capital gains and property basis are calculated.
Should this situation come up again or you believe you need to amend a tax return based on this information, contact a local tax advisor or attorney.