How do I split capital gains over the two co-owners, who are filing single? What forms do I use to have each allowed $250K in gains? Both meet requirements for $250 ded

[DS30 · Accepted solution]

It depends -

If you are asking about the home gain exclusion and you each meet the $250K exemption, then you may not have to report it on your income taxes. If you do then just report your share of the total proceeds and basis in the home on your individual income tax returns.

You do not need to enter or report the sale of your primary residence if:

• You never used your primary residence as a rental or took home office deduction
• You have a loss on the sale of your home (Personal capital losses are not reported on your tax return)
• You did not receive a Form 1099-S and
• You meet the home gain exclusion (see below)

You can take the gain exclusion as long as you considered the home your "primary residence" for 2 of the last 5 years. If you have a capital gain from the sale of your main home, you may qualify to exclude up to $250,000 of that gain from your income. You may qualify to exclude up to $500,000 of that gain if you file a joint return with your spouse. See  Sale of Your Home for more information on the exclusion.

If you still need to enter your sale of your primary residence (which may require an upgrade in TurboTax), please follow these steps:  log into your tax return (for TurboTax Online sign-in, click Here and click on "Take me to my return") type "sale of home" in the search bar then select "jump to sale of home". TurboTax will guide you in entering this information.

You will need:

• The date you sold your home and the selling price (from your closing statement)
• The date you bought your home and the purchase price (from your closing statement)
• The cost of any major improvements you made, so we can deduct them for you
• Form 1099-C if you sold your home at a loss (short sale)

Just remember to check the box to have your home sale reported on your tax return but ONLY if you receive a 1099-S

[fanfare]

This is all very nice, but if the gain is over $500,000 you will have to report a capital gain of the excess over that amount. with or without a 1099-S.

[sarariehl]

I have received a 1099-C, My fiance and I are both owners of the sold property and both lived in the home for the past 5 years. During the sale of home section of our taxes, how do we add in the information that we will both claim part of the profits?

[DS30]

You will just report your half of the 1099-S. There is no need to include an explanation. If you get any correspondence from the IRS, then just explain your situation in a word document and include this explanation with any IRS correspondence you send back to them. (1099-C is not reported under the home sales section - that is considered other miscellaneous income.)

[Lizzzo]

This is a great question, but what I'm looking for is how to split capital gains on Schedule D for Capital Gains or Losses. Can Turbo Tax handle this? Thanks!