Did you live in the home for two out of the last five
years? If you meet the conditions, you
can exclude the gain on the sale of your house.
Please go to the link below and read the section “How do I qualify for
this tax break?”
If you meet the
requirements, you can report either 50% or the whole amount, the gain will be
excluded.
https://turbotax.intuit.com/tax-tools/tax-tips/Home-Ownership/Tax-Aspects-of-Home-Ownership--Selling...
If you don’t meet the requirements stated at the link above,
you would report the sale of your house as though it was the sale of a second home.
If you had it for personal use only, and therefore, you are not getting the exclusion of gain,
it would automatically be treated as the sale of an investment.
You can report the whole amount on each return, adjusting
the basis so you only report 50% of the gain, or you can report half. If each of you reports half, you may still
get inquiries from the IRS, but that should be easily resolved.
Please take a look at the following
information:
https://ttlc.intuit.com/replies/4241480
