My mother and I bought a house for $200k in 2012. I lived in the house by myself until 2018 when my mother got sick and she moved in with me. Also in 2018, I ran into some financial troubles and quit claimed my portion of the house to her. In 2022, we filed another quit claim to give me back my portion of the house. Now that 2 years have passed and we have both resided in the house as our main residence while both owning the house.. if we were to sell the house (for maybe about $700k), would we each be able to claim $250k principal residence exclusion on the capital gains tax?
You'll need to sign in or create an account to connect with an expert.
you both meet the income tax rules to ue the home sale exclusion. Each would have basis of 1/2 the cost if the Fair Market Value was over the tax basis of the portion gifted each time.
Both of you should have filed gift tax returns (as a matter of law) for the gifting of the 1/2 interest in the ownership if the value of the gift was more than $15K.
@Critter-3 their post raises a legal question. Was the first transfer bona-fide or a subterfuge to avoid paying debt owed.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
smicp
Level 2
dodongd-yahoo-co
New Member
ramanathan1720
Returning Member
steve2649
Level 1
gmdandrea
New Member
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.