Gift or not?

[BHoffman]

This is a sequel to that gift basis question earlier in our saga.

Boyfriend and Girlfriend jointly owned a rental house.  Pretty sure it was a JTWROS.  Girlfriend died February, 2016.  She had no taxable income in 2015

Rental house was sold in December, 2015 (before her death).

The 1099-S was in his name only.  The transaction resulted in a loss.

I asked for a copy of the quit claim or any other document to show that she intended to gift the house to him before her death.  She had discussed this with me earlier in 2015, but I don't have any documents from her.

He brought me a Real Estate Power of Attorney and says that's all he has.

Not real sure how to proceed

 

 

[DANRVAN]

You might check with the county courthouse records.

[BHoffman]

Don't think any quit claim was filed due to the sale records.  Her name appeared on the documents as a co-owner, but not on the 1099-S.

[jklcpa]

Not recording the quit claim deed doesn't necessarily invalidate it, if in fact it ever existed.  It could be that this man sold the property in their joint names and acted on her behalf with the POA. Perhaps that is why the 1099S is in error and shows only his name?  Just guessing on that.

Or it's also possible that the missing document is in the package from the day of settlement. I've had many clients stuff all the papers in those folders all together and then not be able to find them later.

[BHoffman]

Thanks Judy!  I'm going to file the gift tax return. Wondering if he can sign it like this:  "Joe Smith, POA for Jane Doe".  

[BHoffman]

Found out he signs as "personal representative".

[DANRVAN]

16 hours ago, jklcpa said:

 Perhaps that is why the 1099S is in error and shows only his name? 

I have seen 1099-S where there are multiple owners but only one listed.