I have lived in the house for 2 years and am now married. My sister does not in the property so it is not her primary residence. We realize that there would be a title transfer tax to remove her from the title.
If you have legal title to the property, then you will be the person that reports capital gains (if any). This title change would need to take place before the sale.
You may qualify to exclude from income all or part of any gain from the sale of your primary residence if you meet ownership and use tests. This means for the 5-year period ending with the sale of the home, you lived in it as your main home and you owned it for 2 years.
If you meet both tests, you may exclude up to $250,000 ($500,000 on joint returns) of gain from your income, and you would not report it on your return.
Do not report the sale of your main home on your tax return unless:
If you have legal title to the property, then you will be the person that reports capital gains (if any). This title change would need to take place before the sale.
You may qualify to exclude from income all or part of any gain from the sale of your primary residence if you meet ownership and use tests. This means for the 5-year period ending with the sale of the home, you lived in it as your main home and you owned it for 2 years.
If you meet both tests, you may exclude up to $250,000 ($500,000 on joint returns) of gain from your income, and you would not report it on your return.
Do not report the sale of your main home on your tax return unless:
Thanks Paula, so if she is removed from the title then there are no capital gains she needs to pay?
She would not be an owner of the property. Only the owner is responsible for the taxes owed.