ADavis2
Returning Member

Deductions & credits

I have a similar situation.  

 

I have a house I own with my mother, as joint tenants.  I have resided in the house as my primary residence for 10+ years.  My mother has claimed her portion as a rental and depreciated it about $51K.  

 

Original cost basis: $343,466

Closing Cost will be approx: $39,000 with repairs approx: $7,000.

Selling price would be $600,000 for an estimate profit for approx: $270,000 based on the cost basis from the depreciation taken and closing cost. 

 

$270K/ 2= $135: Each.  Since this is my primary residents I am gain free but for my mother the gains would be based on $135K?