topic Will I owe capital gain tax on a home I co-signed for my daughter...the sell gains is under the 250K so she will not...but it's not my primary residence... in Deductions & credits

Will I owe capital gain tax on a home I co-signed for my daughter...the sell gains is under the 250K so she will not...but it's not my primary residence...

nabber44 — Tue, 04 Jun 2019 22:39:23 GMT

Is it her primary residence?

SweetieJean — Tue, 04 Jun 2019 22:39:24 GMT

Is it her primary residence?

It's my daughters...I just signed the loan, but I am on t...

nabber44 — Tue, 04 Jun 2019 22:39:25 GMT

It's my daughters...I just signed the loan, but I am on title too....it's her home stead and I own another home which is my homestead...

You really need your name OFF that title before closing...

Critter — Tue, 04 Jun 2019 22:39:27 GMT

You really need your name OFF that title before closing otherwise the closing company will need to issue you a 1099-S for your portion of the sale of the home ... PLEASE talk to a professional BEFORE going into escrow so that the paperwork is clear.

To prevent complications, you probably should have the ti...

Opus 17 — Tue, 04 Jun 2019 22:39:28 GMT

To prevent complications, you probably should have the title transferred in full to your child. Assuming that she has a real estate attorney helping her with the transaction, this is a simple additional matter for the attorney.

If you are still on the title when the home is sold, the default assumption will be that half the capital gains belongs to you and you owe tax on your half since you don't live in the home. You may be able to read but this presumption using a doctor and called "equitable ownership". Basically, arguing to the IRS that you were not really an owner and your daughter owned the entire property. But this is likely to be complicated, a hassle, and there is a chance that the IRS won't accept the explanation. So being off the title is probably a safer way to go.