If my sibling and I purchased a home in 2012, but the deed was only in their name, I lived there the entire time, we filed a quit claim deed to change it to my name in

[branschwe]

Oct of 2023, and then I sold the home in sept of 2024, what is the date that I acquired it? Would it be the date the quit claim deed was filed, or the date of purchase in 2012?

[KrisD15]

Do you have anything in writing for the "purchase" in 2012?

Why was only your sibling's name put on the deed in 2012?

[branschwe]

@KrisD15 I was 18 in 2012 and self employed, and had not been self employed long enough to have the needed employment history, or had any credit to be able to have my name on the mortgage, so the bank at that time said to just do it in his name and add me to it at a later time.

We did have an agreement in writing to share the bills and mortgage and such. 

He then moved out about 2017 and I transferred the utilities and such to my name, but still never changed the deed to my name. 

Fast forward to 2021, I got married, wife moved in, we talked about needing to get the deed to our name(and that I should have taken care of it long ago) and then forgot about it till Oct 2023. Then 2024 we found a house unexpectedly that we loved and bought it and moved and then sold the previous home in sept 2024. 

I'm fully expecting I probably need to pay capital gains tax on that now since I dragged my feet for far too long. But figured I should at least ask before I pay the big bill. And also wanted to clarify what the “acquired date” of the real estate sale would be. 

[KrisD15]

That is a really difficult question.

I could say, just pay the big bill, but in truth you SHOULD be allowed the exclusion since you fit the situation intended, other than having the deed properly listing you as part owner. 

I have to suggest you see a local real estate attorney for advice. 

Having your name on the Deed is the best way of proving ownership, but you and your brother may have had an agreement where you can legitimately say you owned the home two of the last five years.  

I am not an attorney, so I can't make that call. But I do think that as far as the intention of the tax law, the exclusion is written for someone in your situation, had the house a long time, used it as your home, now selling it and making a profit, so you should get a break on the capital gain. 

See if there is something you can get as documentation to prove prior ownership if the IRS asks. 

[NCperson]

@branschwe there are plenty of reasons to be eligible for the exclusion that forces your to sell in less than 24 months prior to ownership. but I can see no exclusions that permit you to be eligible for the exclusion based on some theory of purchasing when your name is not on the deed. 

https://www.irs.gov/pub/irs-pdf/p523.pdf

Intent isn't the proof, documentation of purchasing the property is.  and hoping you do not get audited isn't a strategy.   see a tax lawyer, pay them and get it in writing.  

there is no reason you could not have been on the deed from the beginning with your sibling on the mortgage.  Or that written agreement to share utilities and mortgage could have included language to share ownership, but it didn't.  that is where the story breaks down.  you could spin any yarn you want but it could have easily been resolved in 2012 or through that written agreement.  I do not see you have a leg to stand on to claim 24 months of ownership.