Joint home sale and capital gains

[RUTH1949]

My son bought a house in 2017 and sold it in June of 2024. It was his main home and he paid the mortgage, property taxes, etc. For credit purposes, I was on the mortgage and deed as tenants in common. I live in a different state that does not have income tax, but his state does.

He owned 95% and I had 5%. The title company issued me a 1099 S for 5% of the home sale. He has the benefit of the 250k exclusion since he lived in the house for 7 years. I do not.

Do I report the 5% on the 1099S under the home sale form for tax purposes?  And do I prorate the purchase, expenses. etc for the purchase and the sale?

I did not receive any of the proceeds from the house sale. It all went to the purchase of another home for my son.

I am also wondering if I have to file a nonresident tax return for his state.

[Vanessa A · Accepted solution]

No.  Since you did not receive any portion of the proceeds from the house this will not be considered taxable income to you.

However, since you did receive the 1099-S, you will need to report the 1099-s on your return and then back out the income with a description of did not receive this income.  Your son will need to report 100% of the proceeds from the sale of the house on his return. 

To enter the 1099 -S:

• Income
• Sale of Home under Less Common Income
• Enter the information from the 1099-S
• Continue through 

Then you will take the following steps to remove the income:

• Income
• Less Common Income
• Miscellaneous Income
• Other Reportable Income
• Answer Yes to Any Other Taxable Income
• Enter the description such as Did not receive proceeds from sale
• Enter the amount on the 1099-S as a negative number.