So, the attorney who handled the withholding based it on an inheritance instead of a gift, so she calculated the basis off of the appraisal done in 2001 instead of the purchase price in 1984+improvements. Well, it is a beach house in a nice area that has seen tremendous growth in the past decade. So our claimed gain was WAY OFF and I had to cut a check for $30k over what I was planning to contribute yesterday. That included emergency liquidation of assets at a loss (maybe that will help next year).
My CPA did not catch it at the time of the withholding because she just assumed that the attorney understood the law. I, on the other hand, just trusted the people I hired to without the right amount. Stupid of me, I guess.
Yes, I understand that I am still coming out in the black on the whole thing, but when you get an unexpected notice that you owe $30k in 24 hours, it can be a little stressful.
I called my father to tell him that no good deed goes unpunished.