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ching-kenneth
New Member

What do I report as the purchasing price of a joint owned home? Property was sold and split 3 ways by three single owners and do qualify for $250k exemption.

We sold our home and split 3 ways. We do all qualify for the capital gains tax exemption of $250k per person. When filing on turbo tax, purchase price is asked when filling in the portion for the 1099-S. For each person, do we report the same original purchase price of the home or do we have to split the purchase price as well?

6 Replies
KrisD
Intuit Alumni

What do I report as the purchasing price of a joint owned home? Property was sold and split 3 ways by three single owners and do qualify for $250k exemption.

Since the 1099-S was split into thirds, do the same for the basis (purchase price) of the home. 

ching-kenneth
New Member

What do I report as the purchasing price of a joint owned home? Property was sold and split 3 ways by three single owners and do qualify for $250k exemption.

Is the purchase price a value that follows how the sold price was split? or is the purchase price an interchangeable value?
KrisD
Intuit Alumni

What do I report as the purchasing price of a joint owned home? Property was sold and split 3 ways by three single owners and do qualify for $250k exemption.

I assumed (perhaps incorrectly) that it was split evenly. If you only owned 1/3, you only purchased 1/3, but if the ratio is something different, use the accurate percentage.
When you enter the purchase price, enter the price for only your section. I hope that makes sense.
ching-kenneth
New Member

What do I report as the purchasing price of a joint owned home? Property was sold and split 3 ways by three single owners and do qualify for $250k exemption.

So is the purchase price based on ownership percentage?

i.e:
Split during purchase: 33/33/33
Split during sale: 70/30/0

Would the first person report the purchase price at 33% or 70%?
KrisD
Intuit Alumni

What do I report as the purchasing price of a joint owned home? Property was sold and split 3 ways by three single owners and do qualify for $250k exemption.

33% because that was their basis. I don't understand why it went from 33 to 70 (or zero). Is there more to the story? Did someone buy someone out?
ching-kenneth
New Member

What do I report as the purchasing price of a joint owned home? Property was sold and split 3 ways by three single owners and do qualify for $250k exemption.

No the owner released their share of the property and allowed one of the member to absorb their share
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