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Since you both owned the home and both got a tax form in your name, split the information between your two returns.
You should report the full amount on the 1099-S on your tax return (to match the info the IRS got) and then adjust your cost basis. Using an example: $150,000 on 1099-S, cost was $50,000 = $100,000 profit; $20,000 (20% was yours. Report $150,000 sale amount and $130,000 as your cost basis to show a $20,000 capital gain
You may qualify for an exclusion.
If you meet the qualifications to use the exclusion, any gain over that amount is a capital gain. The exclusions are $250,000 for single, and $500,000 for married filing jointly. See the rules below.
Does Your Home Sale Qualify for Maximum Exclusion
The tax code recognizes the importance of home ownership by providing certain tax breaks when you sell your home. To qualify for these breaks, your home must meet the Eligibility Test , which is explained later.
How your sale qualifies. Your sale qualifies for exclusion of $250,000 gain ($500,000 if married filing jointly) if all of the following requirements are met.
Since you both owned the home and both got a tax form in your name, split the information between your two returns.
You should report the full amount on the 1099-S on your tax return (to match the info the IRS got) and then adjust your cost basis. Using an example: $150,000 on 1099-S, cost was $50,000 = $100,000 profit; $20,000 (20% was yours. Report $150,000 sale amount and $130,000 as your cost basis to show a $20,000 capital gain
You may qualify for an exclusion.
If you meet the qualifications to use the exclusion, any gain over that amount is a capital gain. The exclusions are $250,000 for single, and $500,000 for married filing jointly. See the rules below.
Does Your Home Sale Qualify for Maximum Exclusion
The tax code recognizes the importance of home ownership by providing certain tax breaks when you sell your home. To qualify for these breaks, your home must meet the Eligibility Test , which is explained later.
How your sale qualifies. Your sale qualifies for exclusion of $250,000 gain ($500,000 if married filing jointly) if all of the following requirements are met.
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