I am in the process of selling my half of a co-owned house privately, meaning the title company will not be involved. How do I ensure I am taxed correctly?
We will likely file the deed and transfer the money between our bank accounts. I will not be selling for a profit (more or less break-even). I want to ensure I will not be taxed on the full amount I would receive. Do I need anything specific?
Ensure that you have ready access to closing statements from when you purchased the house as well as any and all receipts/invoices for improvements made to the house during your period of ownership.
Also, be aware that if you owned the house and used it as your primary residence for two out of the last five years leading up to the sale you would ordinarily qualify for the Section 121 exclusion from gain (up to $250,000).