I bought and co-owned a home as a primary residence in 2020 with another person (not married, we are both filing single), but we ended up selling the house late 2021 (we've had the home for about 1.5 years). However, during closing, all income proceeds (about $70K) earned from the sale 100% went to the other person and was not split 50/50, but both of our names were under the home and signed on the closing papers.
Will I still have to report any income from the sale on my part even though I did not receive any amount of the sale earnings? I assume we will each have to report the capital gains due to not owning the home for more than 2 years, but I'm unsure of how to deal with reporting the income as part in this situation and whether I would also need to pay part of the capital gains tax despite not receiving any of the proceeds earned from the sale?
I wanted to make sure I'm not missing or leaving out anything that I need to include in my tax return and vice versa in which I enter in something when I actually don't need to.
