You would be responsible for one quarter of the gain, but that is not how you figure gain.
In general, the sales price minus the purchase price equals gain. However, there are many basis adjustments to come into play. Sales expenses are deducted and any improvements are added to the basis. The sale of home portion of the program will walk you through the procedure. You are also potentially eligible for an exclusion if you meet the qualifications on your personal primary home.
How your sale qualifies. Your
sale qualifies for exclusion of $250,000 gain ($500,000 if married filing
jointly) if all of the following requirements are met.
- You owned the home and used it as your main home during
at least 2 of the last 5 years before the date of sale.
- You didn’t acquire the home through a like-kind
exchange (also known as a 1031 exchange), during the past 5 years.
- You didn’t claim any exclusion for the sale of a home
that occurred during a 2-year period ending on the date of the sale of the
home, the gain from which you now want to exclude.
How to enter
- Open your return.
(To do this, sign in to TurboTax and
select the blue Take me to my return button.)
- Type “sale of home” in the Search box.
- Select the “Jump to” link in
the search results.
- Follow the screens to enter
the info
