How do my sister and I each report cost basis for a home we coowned when she only took 60000 of the 205181.25 profit? We bought the house for 215000.

[buntuns]

I paid majority of mortgage and all other expenses which is why she is only taking that amount and that is what we entered on our closing paper disbursements. House sold for 440000.

[Mike9241]

who lived there - you, your sister, both, neither?  if either or both of you, how long did each of you live in it as  their principal residence how long how long was it owned? 

[buntuns]

We both lived there for 6 years as our primary residence.

[ShirlynW]

The cost basis of the home is $215,000 plus any improvements. Since you stated your sister only took $60000, her percentage of the distribution is 60000/205181.25

.

You also stated this was your primary resident for six years. Your home may qualify for the home sale exclusion.

This "Help Article" explains home sale exclusion.

[buntuns]

@ShirlynW Do we both report 215000 as the cost basis or do we multiply the distribution percent by the 215000 to get what we each should enter? Thank you.

[TeresaM · Accepted solution]

You should each enter your percentage of the basis on your own return and together they should add to 100% of the total basis. 

 If you both lived there for two of the last 5 years, then you may each qualify for an exemption against your portion of the sale. 

[Hal_Al]

Another article on the home sale exclusion:

https://turbotax.intuit.com/tax-tips/home-ownership/tax-aspects-of-home-ownership-selling-a-home/L6t...