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ariannajr93
New Member

My fiancé and I sold a home in Texas and moved to Arizona. The 1099s has both our names. Do we both put the sale of our home on our taxes, or just one of us?

 
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Coleen3
Intuit Alumni

My fiancé and I sold a home in Texas and moved to Arizona. The 1099s has both our names. Do we both put the sale of our home on our taxes, or just one of us?

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.

  • You owned the home and used it as your main home during at least 2 of the last 5 years before the date of sale.
  • You didn’t acquire the home through a like-kind exchange (also known as a 1031 exchange), during the past 5 years.
  • You didn’t claim any exclusion for the sale of a home that occurred during a 2-year period ending on the date of the sale of the home, the gain from which you now want to exclude.

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1 Reply
Coleen3
Intuit Alumni

My fiancé and I sold a home in Texas and moved to Arizona. The 1099s has both our names. Do we both put the sale of our home on our taxes, or just one of us?

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.

  • You owned the home and used it as your main home during at least 2 of the last 5 years before the date of sale.
  • You didn’t acquire the home through a like-kind exchange (also known as a 1031 exchange), during the past 5 years.
  • You didn’t claim any exclusion for the sale of a home that occurred during a 2-year period ending on the date of the sale of the home, the gain from which you now want to exclude.

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