Hi, The Escrow person asked me to fill out this 593 form. I need some help for my circumstance.
A few years ago I co signed with my mom to help refinance her house. I was added to title. She passed away a few months ago. The house is an inheritance to me and my 2 siblings. My sister wants to buy it (buy us out).
So, we are going through that process. I want to make sure i am not going to get hit with capital gains tax.
Based on the research i have done, the 593 instruction guide has words about an being on title for incidental reasons which are "to co sign for refinance", "family members on title to receive property upon death". The instructions say for me to put 0.00% in the ownership box, then it seem i am to click the check box for number 1. primary residence (not my primary residence but it was my moms) and number 3. seller has a loss or zero gain. then because i selected item 3, i am supposed to fill out section VI and for item 16 to put the full price of the property in (price i paid for the house). this will update the cost basis.
Does this sound right? I do my taxes my self with turbo tax and dont use a CPA. I called a CPA but they are not interested in helping unless you are having them do your taxes and it is early for doing the taxes.
Is there any other info i should know when i do my taxes in turbotax? do i enter this transaction some where?
Is escrow still going to withhold 3 1/3 percent regardless of what i put on this form?
thanks
