[eriklp8]

My mom purchased the home and included me as a co owner. She fronted the down payment and paid the mortgage, plus taxes. She moved and bought a new home and left the home for nephews to rent. We sold the property and I received as a gift from my mom about 86k. How would I recognize this gift? Would it be gift or capital gain?

[AtlantaTaxExpert]

Your MOTHER sold the property because her name was on the deed at time of sale, so SHE must show the sale on Form 4797 as a business property.

Based on your post, your interest in the property was essentially as a co-owner to inherit in case your mother met an untimely death. YOU had no basis in the property.

The $86,000 is a gift, pure and simple. You have NO reporting requirement at all. Your mother need to file Form 706 (Gift Tax Return) to report the gift, but likely will pay no gift tax by accessing the Unified Credit.