Each of you should report your share of the sale on your individual tax returns. Determine your share of the selling price, sales expenses, purchase price, purchase date, and purchase expenses. Each of you reports your portion of the sale. this despite the possibility that the gain is under $250,000 and both of you are entitled to the maximum home sale exclusion. for example, if you put down the entire down payment and it's your funds that have been paying the mortgage perhaps it should be you that reports the entire sale.
