The gifting party will need to contend with the fact that the entire sale price including the amount that was gifted as gift of equity will be considered when trying to calculate Capital Gains Taxes due. And under section 121 of the internal revenue code, they are able to exclude up to $250,000 of capital gains if it’s an individual filing or up to $500,000 for a married couple filing jointly. But that’s only if they lived in the property for at least two of the prior five years prior to sale. #RealEstate #GiftOfEquity #CapitalGains #RealWealthWisdom #GetUpleveled credit (IG): Greg Gale - @greg_gale_ SF0409