Sale of property

[NCNeathery]

Purchased property in 2001 with $75000 30 year mtge. Signed the property title over to our Son via Quit Claim Deed during 2022.  Our son subsequently refinanced the property via his own mortgage.  Our original mtge balance of roughly $41342 was paid off from that new loan, and Our son also paid us $20331 cash. How will this reflect in our 2022 taxes?

[KeithS01]

Hi, @NCNeathery!

It sounds to me like you "sold" the property to your son for $61,673. If this was your "primary residence", meaning you owned it and lived there for two of the last five years, you won't need to report this at all, as it is under the exclusion of $250,000 ($500,000 if Married Filing Jointly).

If this was a rental or investment property, you'll need to report the sale in order to properly compute the gain/loss.

[NCNeathery]

That NC property has not been our primary residence since April of 2017. (We retired to Florida.) Our son was living there and making payments on our mortgage directly as of April 2017.

[KeithS01]

That gets a little trickier. I'd advise you talk this through with a local tax professional. My first thought would be that the mortgage payments over the last five years were substantively "option payments", which should be added to the sales price, and then reported less your original purchase price.