If you sell a house do you need to file a return for the capital gain or do it when I file taxes next year

[amandinator85]

if there are two people listed on a house title. One of them lived in the house for 3yrs and the other didn't live in the house at all. What happens if they were to sell the house and there's capital gain? If because person "B" didn't live in the house (but made all the deductions) would they be free of being taxed on the gain, or would both persons be free of such? Can the profit be split in any way to each party without person A being taxed? Thanks so much for any help

[Carl]

I am assuming both owners were married to each other in 2016 and they are filing a joint tax return. If thats your case, since only one of the two owners on the deed lived in the house for 2 of the last 5 years, the capital gains exclusion amount would be $250,000 only. That is of course, assuming this sale is being reported on a joint tax return.

[amandinator85]

Thank you for the prompt response. Primary listed owner "A" is the mother of secondary listed owner "B".