Capital gains tac

[Eugene613]

Hi

I was added to the title of my parents home. They have meet ownership and use, I meet ownership but not use. We need to sell as my mom can no longer get around the house due to balance issues. Can I claim a partial exclusion? 

[tagteam · Accepted solution]

---

@Eugene613 wrote:

I meet ownership but not use. We need to sell as my mom can no longer get around the house due to balance issues. Can I claim a partial exclusion? 

---

You actually answered your own question; you cannot claim the Section 121 (home sale) exclusion because you do not meet the main home use test.

See https://www.irs.gov/taxtopics/tc701

[Bsch4477]

No, since it was not your primary residence. 

[Mike9241]

consult a real estate lawyer. you may want your name taken off the title.  since they meet the ownership and use test they would qualify for the full $500,000 exclusion. 

if that can't be done or the lawyer advises against it your parents would still qualify for the exclusion on their portion of the sale. you would not.

[Eugene613]

Thanks. So any tax is only on my portion? 

[tagteam]

As has been stated, contact a local attorney that has experience in federal tax law, real estate, and estates/trusts.

There is a possibility that you wll not have to report any gain if this scenario is handled properly.