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Reporting Capital Gains (Accidental Repost of same question)

I apologise for posting same question twice, I thought I lost this, retyped another and can't seem to delete this!



My husband and his brother bought their grandmother's home and farmland this year.

They both paid for and own exactly 50% of everything.

They plan to sell the home and farmland (separately) within the first year.

They are both paying all Capital Gains at the time of sale (not at tax time)

This is not a primary residence for either, nobody lives in the house right now.



1. When reporting the purchase price, sale price, and capital gains we prepaid how is this done when you have 50% ownership.

For example only:

They together paid 200,000 for the house and farm together. (Each paid $100,000)


Will my husband have to report the FULL actual purchase price of $200,000, but it will then ask him his percentage of ownership of that amount where he will put in 50% of that?


Will he only put down the purchase price he himself paid 100,000

I assume whatever is correct would also pertain to the way he reports the sale price and Capital Gains he paid.


2. Can you please explain exactly where we need to go in Turbotax (online Self Employed version) to make sure we have reported everything that pertains to this situation correctly?



Thank you for your time.

6 Replies

Reporting Capital Gains (Accidental Repost of same question)

Reporting Capital Gains (Accidental Repost of same question)

I am aware it is a repost and apologised. I thought I lost my first post my screen froze up.

Reporting Capital Gains (Accidental Repost of same question)

it really depends on whether a 1099-S is issued. if not each of you would report 1/2 of the sale. if it is see if i50 % of the proceeds can be reported on 2 forms rather than one. if only one is issued the person whose SSN is used will have to report 100% (the IRS will be looking for it) and then subtract 50% to report only their share. the latter situation is not easy to handle in Turbotax because it does not like negative numbers

Reporting Capital Gains (Accidental Repost of same question)

It's very simple. First work up all the amounts as if there were one owner,

Each owner divides all the actual amounts involved by two.

In the Form 8949 description note "50% interest in property"


Note: there's no place in TurboTax to enter a 1099-S.

Reporting Capital Gains (Accidental Repost of same question)

You never pay the tax you owe at the time of the sale.  You can pay an estimate.  However, the final tax is only calculated one time, as part of your tax return at the end of the year.  If you owe more than the estimate, you pay more, and if you owe less than the estimate, you get the difference back as a refund.  Don't start thinking you can file form 8949 in the middle of the year by itself. 

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*

Reporting Capital Gains (Accidental Repost of same question)

What I meant was they would pay the estimated capital gains ahead of time. We had no intention of trying to file a tax form mid-year.


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