moving for the first time

[gmboy7000]

I'm selling my home in Colorado, I will be splitting the proceeds with a family member, what all do i need receipt wise for capitol gain to avoid being hit really hard, and is it per person or all together for capitol gain?

[slaudenslag]

If this is your primary residence, you may qualify to exclude the gain.  To qualify, you must have owned your home and used it as your main residence for at least two years in the five-year period before you sell it. You also must not have excluded another home from capital gains in the two-year period before the home sale. If you meet those rules, you can exclude up to $250,000 in gains from a home sale if you’re single and up to $500,000 if you’re married filing jointly.

The capital gain on the sale of your home will be determined as follows:  sale price - selling expenses - original purchase price - expense of capital improvements made during ownership of home.  If the capital gain is less than $250,000 if you're single or less than $500,000 if you're married filing jointly, then all the gain will be excluded from income.

With regards to splitting the proceeds with a family member, the home owner will bear the tax responsibility.

[drc845443]

Hello there,

You have indicated that you are "moving for the first time" Was the home that you are selling your primary home? If it was your primary home and you meet all the conditions, then may qualify to exclude part of the gain (up to $250,000 or $500,000 depending on whether you are single or married filing a joint return)

Here are the conditions/rules for excluding the capital gain on your primary residence:

https://www.irs.gov/taxtopics/tc701

https://ttlc.intuit.com/community/tax-credits-deductions/discussion/where-do-i-enter-sale-of-a-home/...

If you co-owned the home with a family member, each needs to calculate their share of the gain, and then consider whether the exclusion of the gain on the sale of the primary residence are applicable to each person.

If the gain cannot be excluded, each of you have to report the gain separately on your tax returns, unless you are a married couple filing a joint return.

[rjs]

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@gmboy7000 wrote:

I'm selling my home in Colorado, I will be splitting the proceeds with a family member

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Is the family member also a part owner of the home, or are you the only owner? If the family member is an owner, you will split the gain as dchitiyo described above. The closing agent should issue a separate Form 1099-S to each of you, showing your respective shares of the proceeds. You do not have to get a 1099-S if you are able to exclude your entire share of the gain.

If you are the only owner, the entire gain belongs to you. You will have to pay tax on all of the gain except what you are able to exclude. Any money from the sale that you give to the family member is simply a gift from you to the family member. A gift is not taxable income to the person you give it to. The family member does not have to report the gift on his or her tax return, or pay tax on it. If you give the family member more than $15,000 you will have to file a gift tax return, Form 709, but you will not actually have to pay any gift tax unless the total of all the gifts you have given in your lifetime is more than $11.7 million. You cannot file a gift tax return with TurboTax.