Tax Year Prior to 2020: How should I report taxes on joint owners' house sale?

[DaveF1006]

Since Massachusetts is not a community property state, you may declare all gains from the sale of the Condo on your tax return.

[MRIKE21]

Question along these lines. Back in 2004 my mom added me to her home as tenancy in common. I have never contributed to any funds for the home as it was already paid off. If she was to sell it today, and keep 100% of the funds, do I have to file taxes or claim anything? How does this tenancy in common affect me?

[Hal_Al]

@MRIKE21 

Q.  If she was to sell it today, and keep 100% of the funds, do I have to file taxes or claim anything?

A. No.  Taxes essentially "follow the money".  Your mother reports it all since she has 100% beneficial interest. 

You may have a problem if you get a  form1099-S, in your name, for the sale.  In that case, you'll have to use a work around to report 0 capital gain.

[topcollector]

I bought a house in 2020 with both mine and my brothers name on the title. It was only my primary home, my brother did not live there he has his own separate primary home. I put his name on the title just in case something happened to me he would have rights of survivorship if something happened to me. I sold the house after living there for 18 months. 

My question is in the eyes of the IRS, do they see this as a 50/50 co-ownership even though I paid 100% of the down payment and 100% of the mortgage payments? I qualify for an exclusion to cover my portion of the gain but since the house was not my brothers primary, he does not. Or can I claim 100% of the gain and he claim 0?

Thanks!!

[ZoltanB45]

Since you paid for all of it and I am assuming received all the funds, you would record the 100% of the sale on your tax return. He doesn't report anything.

[topcollector]

Thank you for the response. I realize I did fail to mention that my brother was also on the mortgage as well. Does that change anything? I did receive 100% of the proceeds from the sale, my brother received none.

Thanks again!

[DaveF1006]

If you received 100% of the proceeds and your brother received none, you will report this sale strictly on your tax return.

[Krazyrae]

My son and his fiance’ purchased a condo on for $192,500 on 9/15/2019 and sold it on 8/27/2021 for $230,000. The deed and mortgage is listed in both names even though my son makes all mortgage and property tax payments.  So I have 2 questions. Because they lived there for 23 of 24 months and didn’t meet the 2 year requirement, can they still be excluded from the gain on the sale of the property or Would he have to pay a pro rated amount (23/24= 4%)?

He received 1099-s in only his name, for $115,000, 50% of the sale proceeds so when entering the cost of the condo when they purchased it should I only enter 50% of that amount ($192,500/2 = $96,250)?

[Critter-3]

Correct ... the sale was split between the 2 parties so the purchased price would also be divided in 2. 

[Tuff733]

Hi,

My father and I purchased property together in 2012 and had the deed placed in joint tenancy with rights of survivorship. We have shared the profits and expenses of the rental house and never lived there. This year we sold the rental house and made a profit. He gave me all the profits from the sale. What are the tax implications for each of us? 

Thank you in advance for your assistance!

[ErnieS0]

It sounds as if your both sold your shares of the house and your father gave you a gift. We'd need more details @Tuft733.

If the above were the case, you would each report your share of the sale on your individual tax returns. Since it's a rental I assume you've been reporting the income and expenses as a rental in prior years.

You father will probably have to file a gift tax return. Most likely there will not be any tax due. However a return is filed if the value of the gift exceeds $15,000 per person per donor.

[Tuff733]

Hi and thank you for your reply.

Yes we have both been filing our rental income and expenses in prior years.  What are the tax implications for him to gift me more than $15,000 in a year?

Thank you!

[PattiF]

There are no monetary tax implications for the person who gives the gift or for the person who receives the gift. It isn't counted as income for the giftee and it is not a deduction for the gifter.

The person who gives a gift that is more than $15,000 is required to fill out Form 709 United States Gift (and Generation-Skipping Transfer) Tax Return. This form is not included with TurboTax because few people need it. The form is not filed with your tax return. This is a separate form to be completed and mailed. 

Here is a link to the IRS Form 709 page.

[Alextvz]

Hello,

Back on November, 2021 my parents and myself sold a house we bought together several years back. We lived  in the house for about 7 years before selling it.  Each of us received a form 1099-S in our names  from the title company with the exacly same amount  ($88,351) on the Gross proceeds' box.  The issue is that the home sold for 265k, then after deducting the commissions, fees and the original morgage owed, we ended up receiving 49k myself and my parents 98k  as per the ALTA settlement statement we received from the tite company at time of closing.  So, for filling porpuses what amounts are the ones needed to be reported? The amounts on the gross proceeds box? 

Thank you

[MarilynG1]

Since you lived in the home for at least two of the last five years prior to sale, none of the proceeds are taxable to any of you.

Go ahead and enter the 1099-S as you received it.

Click this link for steps on How to Enter Form 1099-S.