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.
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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:
The person above technically only owned 50% of the home during the last 5 years until he was gifted the remaining 50%. Does he has to pay capital gain tax on the 50% that was gifted when he sell the house?
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