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2 siblings sold a home, who has to file taxes on the home ?
If 2 siblings sold a home, one get a check for the full amount. Who has to file taxes ?
1 sibling lived in the home as a primary residence the other did not.
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2 siblings sold a home, who has to file taxes on the home ?
I am assuming that they are going to split the proceeds between them. And that each sibling will get 50% of the proceeds.
The sibling who lived in the house, if for two years, will get the benefit of excluding the proceeds from the sale from capital gains taxes.
Both siblings will enter the 1099-S on their tax returns with the full amount of the proceeds. In addition, each sibling will enter 1099-S with a negative 50% of the amount on the 1099-S. That means each will end up being taxed for 50%, But one sibling will not be entitled to the $250,000 exclusion from capital gains taxes.
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2 siblings sold a home, who has to file taxes on the home ?
Turbotax does not allow a negative selling price. this is a situation that Turbotax does not handle well. two owners filing separate returns selling a property but only one receives the 1099-S for the full proceeds.
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2 siblings sold a home, who has to file taxes on the home ?
Assuming that the siblings were co-owners and both were listed on the title, the IRS will assume that they were 50% owners and each is responsible for 50% of the sale. The sibling who lived in the home as their main home may qualify for the capital gains exclusion on their half of any gain, but the sibling who did not live in the home will owe capital gains tax on their half of the gain, even if that sibling did not receive a check from the closing company. This is something that should have been worked out in advance, possibly with the assistance of an attorney.
Depending on whether or not a 1099-S was issued, there are a couple of different ways this could be reported in TurboTax, but you will have to clarify the details of the situation.
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