Hi, I have a question regarding the sale of a house in which I was a part owner (40%).
Basically bought the house in June 2015 for 1.07M, had about 60K in improvements, and sold it in June 2018 for $1.5M.
I received a 1099-s, and it shows my gross proceeds as $600K (1,500,000*0.40). When entering the "sale price of the house" on TurboTax.. it says to use the sale price of the house which can be found on the closing statement of the sale of the property which is $1,500,000. I'm unsure if I should input 600,000 there or 1,500,000.
From my understanding I am entitled to a $250,000 exemption on the gain of the house. Total gains was 1,500,000 - 1,130,000 = 387,000. multiply that by 40% = $154,800, which is under the $250,000 exemption. So I shouldn't be taxed on the gains. But when I enter $1,500,000 into Turbotax, it thinks I have a gain of ~$46,000 that should be taxed. So I think I should enter $600,000 but wanted to ask here to make sure that would be correct.