Capital Gains on Condo purchased with Cash

[Krista Walker]

Hi all-

I purchased a condominium in Scottsdale, AZ almost 4 years ago for $65,000 with my mother's estate money. My brother has lived in it rent-free for that time. We put it in my name because he had a collection agency after him for a hospital bill. I am now selling the condo to him for $130,000 and am gifting him the equity for the down payment of $26,000 and giving him half of what is left over minus what I have to pay in capital gains. Will I have to pay capital gains on the gift equity? My broker says to seek the advice of a CPA but it's hard to find one knowledgable about real estate. I'm taking my money and investing in some rentals so I would like to find one. Thanks so much for taking the time to help a newbie:)