How do i report the sale of a home if the original purchase was split 50/50 between 2 unmarried individuals and one individual passed away leaeding to a buyout of other?

So, if I understand you correctly, family members inherited the other party's half and bought your half.

 

Your basis is your half of the entire cost, plus your half of any improvements the two of you made. This amount is subtracted from the sale price (your half of the property). The difference is a gain or loss. Gain is reported on Sale of Home and a loss is not deductible.

• Click on Federal Taxes (Personal using Home and Business)
• Click on Wages and Income (Personal Income using Home and Business)
• Click on I'll choose what I work on
• Scroll down to Less Common Income
• On Sale of Home (gain or loss), click the start or update button

The Sec. 121 exclusion of gain on the sale of a residence is available to unmarried joint owners.

• To exclude gain, a taxpayer must both own and use the home as a principal residence for two out of the five years before the sale.
• The ownership and use tests do not need to be concurrent. The regulations provide that if taxpayers jointly own a principal residence but file separate returns, each owner may exclude up to $250,000 of gain attributable to their respective interest in the property if they otherwise meet the exclusion requirements (i.e., ownership and use tests).

Two single owners