Reporting home sale with 1099-s

[dobels12]

I owned a home along with my father. We sold this property in 2020, and we each received a 1099-s.

Now the total sale price of this house is 350,000$. I got half of this money, and my father got the other half. We each received a 1099-s, and the gross proceeds on each of our 1099-s is 175,000$.

We purchased this house several years ago for 200,000$.

Now I understand that I would report this home sale on Form 8949, and under (d) proceeds, I would put down 175,000$ (my father would do the same on his return).

My question is regarding column (e) cost or other basis. I am assuming that the total original cost 200,000$ would be split in half as well so my basis would be 100,000$ (as would my father's on his own tax return). Because if I put in the original total cost 200,000$ then it would seem like I sold the property at a loss of 25,000$ which makes no sense whatsoever. Some confirmation about this would be appreciated.

Finally I qualify for the primary home sale exclusion, so my capital gains of 75,000$ (175,000$-100,000$) falls well under the 250,000$ exclusion for single filers and I shouldn't have to pay any capital gains tax correct?

Thanks a lot for your help.

[gloriah5200 · Accepted solution]

Yes, the information above is correct, with some clarification on the fact of whether or not the home sold was considered the principal residence of both of you or just you.

If this qualifies as the sale of a home, then you would show it as the sale of a home and report the amount of qualified home sale exclusion.  Since Form 1099-S was received for the sale of the home, it must be reported on the return because IRS will be looking for it on your return, but it will show 0 capital gains, as being adjusted by the Home sale Exclusion code.

If your father was just an investor and did not live in the house, then his gain is not excludable and is fully taxable on his Form 8949 and Sch D.