Hi - I own property with a friend, both of us are on the deed but only I’m on the mortgage. It’s a joint tenants with rights of survivorship. We sold the house. She can use capital gains exclusion because she has lived in the house since it was purchased. I have not. She is taking the entire profit per a notarized agreement we made (unmarried ex relationship situation). Do I still have to report my “share” and incur the capital gains tax even though I’m not actually taking any of the profit? If so, do I only report 50% of the profit? If she’s not filing on her taxes because she qualifies for the exclusion, will the IRS be confused by that? Thanks!
