Splitting Capital Gains - Unmarried

[AnoCGW]

I purchased a home. My boyfriend and I were co-owners. He was not on the mortgage. We sold the home and the gains were split in half. The home was sold after over a year but less than two so we will have to pay the capital gains tax. How will this work when filing taxes and what forms may I need to be on the lookout for? I don't want to end up paying taxes on the full gains when I only received half.

[Anonymous_]

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@AnoCGW wrote:

We sold the home and the gains were split in half.

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Did you each get a 1099-S from the closing agent?

[Mike9241]

the mortgage is irrelevant in computing gain. as @Anonymous_  pointed out it's best if each of you gets a 1099-S. 

was there any particular reason for the sale? under some conditions, a partial exemption may be available.

[Mike92ct]

Just to double check, make sure the home sale does not apply to any of the reasons that may exclude you paying any capital gains. "Unforseen circumstances" or moved for a job to name a few. Please refer to that section for clarity. I used it on a home we owned for one year and in 2021 the values went up so quick. My wife got a new job in a different state. 

Edit. I see someone else suggested this too before me. 

Divorced or legally separated is listed. Maybe you're off the hook??  Good luck

[Anonymous_]

See https://www.irs.gov/publications/p523#en_US_2021_publink100073096