She is a Canadian resident and I am a US resident. We put cash together and bought a primary home for her. We decided that I only own 1% of the home on the title and she owns 99%.
1) Do I need to report this purchase to IRS?
2) Do I need to report the inheritance to IRS if she passes away and leave the home to me?
3) Do I need to report the sell profit of the home if we decide to sell it?
No, you do not need to report the purchase to the IRS.
Probably not, there could be an estate tax when she passes away, however, the current threshold to have to pay taxes on an estate for the federal return $13,610,000. However, states have different inheritance rules, so depending on your state, you may have to pay a state inheritance tax.
Yes, you would need to report the sale even though it is 1% ownership. You would report 1% of the profit.
No, you do not need to report the purchase to the IRS.
Probably not, there could be an estate tax when she passes away, however, the current threshold to have to pay taxes on an estate for the federal return $13,610,000. However, states have different inheritance rules, so depending on your state, you may have to pay a state inheritance tax.
Yes, you would need to report the sale even though it is 1% ownership. You would report 1% of the profit.