Selling a Home that I flipped

[Looney1966]

Hello,

I bought 2 years ago and fixed up to flip that my Mother co-signed on and is listed on the title. In 2020 I sold that home. I am sure of the following:

• My mother co-signed on the loan and was listed on the title.  
• Can I claim the entire sale on my taxes, even if she is on the title?
• Do I treat this as a capital gain for tax purposes?
• Where do I report the sale?
• I am not in the business of flipping, I just wanted to try it and will not be doing this again.

[DavidD66]

If your mother did not have a financial interest in the property, then you can report the entire sale on your tax return.  If you made a profit, it will be taxed as a long-term capital gain, since you owe You will report that in the same section in which you report stock and other investment sales.  To enter:

• Type "Investment sales" in the search window and click Enter
• Click on "Jump to Investment sales"
• On the page with "Did you sell any investments in 2020?"  Answer Yes
• Answer "Other" to "OK, what type of investments did you sell?" and click Continue
• Enter the name of the person or firm that brokered this sale
• On the page with "Now we’ll walk you through entering your sale details" for "What type of investment you sold" Indicate "Second Home"
• Indicate "How did you receive this investment?
• Enter the details of the sale, and the interview will walk you through entering the details of the sale

[Looney1966]

What do you mean a financial interest?  She co-signed and her name was on the title.  

[npierson7]

Yes, you can report entire gain on sale on the house on your tax return. To figure out the gain in sale you need to know you cost basis, which is your original purchase price plus cost of improvements. There are lots of factors involved could potentially affect your gain. Beafore you file your tax return please check put the article:

Tax Aspects of Home Ownership: Selling a Home

[Looney1966]

Okay, so just so I am clear.  Even though my mother was on the title of the home with me , I can still claim the entire sale and she doe not need to claim anything on her taxes?

[Irene2805]

Yes -- As long as that is the agreement between you and your mother. 

You can report the transaction as a sale of a second home.  A sale of a second home is considered a sale of an investment.  To report this in TurboTax, please follow these steps:

TurboTax Online

1. Click on Federal > Wages & Income
2. In the Investment Income section click on the Start/Revisit box next to Stocks, Mutual Funds, Bonds, Other.  If you have already entered some investment sales, you will see a screen Here's the investment sales info we have so far.  Click on the Add More Sales link. 
3. If you haven't yet entered some investment sales, you will see a screen Did you sell any investments in 20XX?  Click the Yes box.
4. On the screen,  OK, what type of investments did you sell? mark the Other box and click Continue.
5. When you get to the screen, Now we’ll walk you through entering your sale details enter the details of the sale.  You will be able to select the type of investment in the first box [second home, land, etc.]  [See Screenshot #1 below.]
6. Enter the requested information and click Continue when done.

TurboTax CD/Download

1. On the Wages & Income screen, in the Investment Income section click on the Start/Revisit box next to Stocks, Mutual Funds, Bonds, Other.  If you have already entered some investment sales, you will see a screen Here's the investment sales info we have so far.  Click on the Add More Sales link. 
2. If you haven't yet entered some investment sales, you will see a screen Did you sell any investments in 20XX?  Click the Yes box.
3. On the screen,  Did you get a 1099-B or brokerage statement... click the No box.
4. On the screen, Tell us about this sale, mark the radio button, I'll enter one sale at a time.
5. Enter the information in the boxes that appear.  You will have to type in Second Home in box 1a.
6. Enter the total sales proceeds as well as the other information requested.  [Screenshot #2]
7. Continue to the screen, Select any less common adjustments that apply.  
8. Mark the first box The reported sales price did not deduct all fees or selling expenses.  [Screenshot #3]  
9. Enter the sales expenses not deducted from the sales price entered earlier.

Screenshot #1

Screenshot #2

Screenshot #3

[Hal_Al]

For taxes, you "follow the money".  The fact that all the cost were paid by you and all  gain went to you, means you are the only one who needs to report the sale, on your tax return.  Ownership, alone, does not obligate her to report any of the sale.