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Selling a property my son and I purchased several years ago. How to report sale on our tax returns?

We are both on Title. He lived there the entire time. Selling it now. I have 59% interest and he has rest. He didn't pay rent, he paid part of the mortgage payments. I don't know how to report this sale.... is it a second home sale on my taxes and primary home sale on his taxes?  

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Selling a property my son and I purchased several years ago. How to report sale on our tax returns?

As you are both 50% owners of the home, you each should only report the sale of your share, using 50% of each number: sale price, cost basis, sales expenses.

 

You should report as sale of a second home. Please note that if you have capital losses, they are not deductible as the second home is personal use property.

 

Your son will report the sale as the sale of his residence. If he has lived more than 2 years in the home in the last 5 years, he is eligible for the capital gain exclusion of $250,000 ($500,000 if married filing jointly).

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Expert Alumni

Selling a property my son and I purchased several years ago. How to report sale on our tax returns?

As you are both 50% owners of the home, you each should only report the sale of your share, using 50% of each number: sale price, cost basis, sales expenses.

 

You should report as sale of a second home. Please note that if you have capital losses, they are not deductible as the second home is personal use property.

 

Your son will report the sale as the sale of his residence. If he has lived more than 2 years in the home in the last 5 years, he is eligible for the capital gain exclusion of $250,000 ($500,000 if married filing jointly).

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

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