@gmboy7000 wrote:
I'm selling my home in Colorado, I will be splitting the proceeds with a family member
Is the family member also a part owner of the home, or are you the only owner? If the family member is an owner, you will split the gain as dchitiyo described above. The closing agent should issue a separate Form 1099-S to each of you, showing your respective shares of the proceeds. You do not have to get a 1099-S if you are able to exclude your entire share of the gain.
If you are the only owner, the entire gain belongs to you. You will have to pay tax on all of the gain except what you are able to exclude. Any money from the sale that you give to the family member is simply a gift from you to the family member. A gift is not taxable income to the person you give it to. The family member does not have to report the gift on his or her tax return, or pay tax on it. If you give the family member more than $15,000 you will have to file a gift tax return, Form 709, but you will not actually have to pay any gift tax unless the total of all the gifts you have given in your lifetime is more than $11.7 million. You cannot file a gift tax return with TurboTax.
