You'll need to sign in or create an account to connect with an expert.
Who actually paid for the property, claimed the rental income and expenses, paid the property taxes, mortgage interest, etc.? Then who actually pocketed the gain? That's who pays tax on the gain.
I was in a similar situation with one of my rental properties. The only reason my parents were on the loan and the deed, was so that I could get the loan. I paid for the property 100%, plus all the property taxes, mortgage payments and interest, and I was the only one to report all this on SCH E. Therefore, upon disposition of the property I am the one to reports the disposition, and I am the one who pays taxes on any taxable gain. While my parents did have a "legal obligation" to pay for the property and it's associated expenses, they never "actually paid" a dime. So I am the one who has to deal with it tax-wise, and not them.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
cinmay1120
Level 2
TravindyB
New Member
sun8
New Member
abariana89
New Member
gavinrobbins
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.