Son and father made major renovations since house was unsaleable as is.
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Since this was not the primary home for either of you for at least two years, there is no exclusion of the gain. You will each share the gain. Start with cost, add improvements and expenses of sale and compare it to the sales price for gain. If it was a 50/50 share, then divide these amounts in half and each take your portion on your individual returns.
Report the sale in the investment section of TurboTax. Follow these instructions:
Note: Whether you had a loan on the property or how much cash you received at closing doesn't matter to the IRS. The IRS will tax you on the profit from the sale, if any.
In simple terms, the Gross Proceeds minus Expense of Sale (if needed) minus Original Purchase Price minus Improvements (expenses for new roof, kitchen remodel, etc.) equals Your Taxable Profit.
TurboTax will ask you all the necessary questions to determine if you have a profit or loss on the sale.
Since this was not the primary home for either of you for at least two years, there is no exclusion of the gain. You will each share the gain. Start with cost, add improvements and expenses of sale and compare it to the sales price for gain. If it was a 50/50 share, then divide these amounts in half and each take your portion on your individual returns.
Report the sale in the investment section of TurboTax. Follow these instructions:
Note: Whether you had a loan on the property or how much cash you received at closing doesn't matter to the IRS. The IRS will tax you on the profit from the sale, if any.
In simple terms, the Gross Proceeds minus Expense of Sale (if needed) minus Original Purchase Price minus Improvements (expenses for new roof, kitchen remodel, etc.) equals Your Taxable Profit.
TurboTax will ask you all the necessary questions to determine if you have a profit or loss on the sale.
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