Splitting Capital Gains - Unmarried

Forum|Forum|3 years ago
December 16, 2022
3 replies
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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_

Level 15

@AnoCGW wrote:

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

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

Mike9241

Level 15

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

Level 2

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