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If somebody gave you your personal home and the donor’s adjusted foundation, when it was given to you, was greater than the FMV, your foundation at the time of receipt is the same as the donor’s adjusted basis. If you got your home after 1990 but earlier than April four, 1994, you have to scale back your foundation by seller-paid points only if you deducted them. If you purchased your home after April three, 1994, you should reduce your foundation by any factors paid on your mortgage by the one who sold you your own home.

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