I sold my primary home but it was co-owned by my mother who did not reside there. We agreed to split the sale based on our initial contributions, how do we report this?

[ToddL99]

Did you receive a Form 1099-S?

[Mike9241]

no 1099-S. no problem. you report your 1/2 the proceeds as the selling price, 1/2 the selling costs and  1/2 the basis.  if you owned it for 2 out of 5 years before the date of sale you are entitled to the full home sale exclusion (provided you did use the home sale exclusion in the last 2 years before sale). a partial exclusion may be available under certain conditions. 

your mother would also report the sale using 1/2 the sales price, selling costs and basis. However, since she didn't live there she is not entitled to any exclusion

if only one of you got a 1099-S reporting 100% of proceeds this may be a situation TurboTax can't handle. if that person only reports half the proceeds the IRS computers will compare the proceeds reported on the    1099-S vs the those reported on the tax return and send that person a bill for the 1/2 of the proceeds not reported.  the one not receiving the 1099-S will have no problems.  best would be to have the 1099-S reissued showing 1/2 the proceeds to each.