We have a 2nd home jointly owned with my wife and adult daughter. There will be capital gain on sale of about $100k. My daughter had income as well so she is not a dependent on our joint return.
My daughter resided in this home while attending school for 3 years, so she can claim exclusion of $250K so there is no capital gain for her. My wife and I did not live there so we believe we have to report gain.
How do we apportion- is it 1/3 to each owner, or 1/2 for wife and I and 1/2 to daughter, or can we arbitrarily assign the gain as we want to advantage our taxes?
