I was put on my Mom's Condo Title in Feb. 2022 (Joint Tenant with Right of Survivorship and not as Tenants in common)

[tc2961]

1) I am 62 years old Married and both of us are retired with gross income around $131k (two pensions and small monthly 401k deduction). I live in Ohio. I was put on my Mom's Condo Title in Feb. 2022 (Joint Tenant with Right of Survivorship and not as Tenants in common). Currently Condo worth around $260k. What happens tax wise in the future when I am the sole owner of this property? I currently own my own home and this would be a second. There is a Will and my Mom wants me to sell and split four ways with my Siblings. I just need an idea of tax liability so I can also split this four ways (Sell, pay taxes and deduct taxes I had to pay for Siblings). If this makes sense.

2) One more question: Including information above, when I reach Medicare age 65 they will look back two years for total income. How does the sale of this Condo get documented in taxes (I am trying to stay under $194k for Medicare premium purposes).

[Anonymous]

Thank you for your question

1. In the future when you become the sole owner of this property and you decide to sell it at a gain then you must pay capital gain taxes (0%, 15%, 20%, 28%).  If it sells at a loss, then you will get the benefit to report the loss up to $3,000 in your tax return.  To determine the taxes at this point we can only estimate because we do not know how much your taxes will be.  It also depends on the tax rules because they always change.

You can use our tax calculator to estimate the taxes at;

TURBOTAX ESTIMATOR/CALCULATOR

https://turbotax.intuit.com/tax-tools/calculators/taxcaster/

As far as your siblings, you will be the sole owner and you are responsible for the taxes, and you can only get reimbursed by them.

2. The sale of the Condo will be reported as investment sale on schedule D and it will be showing on Form 1040 line 7.  If it is a gain it will be shown as addition to your income and if it was a loss it will be shown as a deduction to your income

I hope this answered your question

Thank you so much

Martha