Opus 17, thank you! This is helpful.
I want to add a little more detail around the same of house 2 & house 3. As mentioned, house 2 was co-owned by Mom and me. At closing, instead of the seller’s amount due being split 50/50, we had $75K go to her via wire transfer from the closing attorney. The remainder went to me, which I paid capital gains on.
She took the $75K & used it toward House 3. She and her husband were on the loan for the remainder and on the warranty deed at closing of the sale. She added my name & my husband’s name to the warranty deed via a quit claim deed (QCD) so that the house would go to us upon their death. They are now divorcing and house 3 has been sold. At the closing of house #3, the closing attorney wire transferred $75K to me, and split the remainder between mom & her soon-to-be ex husband. My concern is that my name was on the deed. So, does that mean I sold real estate and now have to report it as capital gains? I guess I’m looking at it like, if Mom had not been in the equation at all, I would have had to pay the gains on all net proceeds from house 2 and somehow I just kicked that can down the road, but the same rules apply.
By the way, I’m looking for a local tax pro to have a conversation with about this as well. You seem to have a good handle on what I’m doing though so I wanted to clarify a little more.
thanks again!
