Hi, I sold a vacation home in 2021 for a profit. The home was owned by three people in my family. All three of us were on the deed prior to sale, but only one person on the mortgage (we'll call him person D). We are all in different tax brackets. Who pays the capital gains taxes on this sale? Person D because on mortgage, or, is it split, and if so, what percentage would each party pay? Here's some additional information to help...
- The house was new construction and about 5 years old when sold
- We (the three parties) put a lot of work into it, which we can prove. I know this can be deducted when filing this year
- All parties live in Delaware but the house is located in Poconos, PA
- We never rented, it was used strictly for family vacation
- No written agreements between parties was drawn up, because we are family
Thanks much! Chris
