turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

brunnerpd
Returning Member

Home sale with 2 owners

I purchased a home 5 years ago with a partner. The house is homesteaded in the state of Florida. If the profits of the sale are under $250k, and all profits will be allocated to their bank account through the sale of the property. Thus showing that I will not be making any profit, am I required to report anything on my standard yearly taxes?

x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

8 Replies

Home sale with 2 owners

 
AR_CPA2
Employee Tax & Finance Expert

Home sale with 2 owners

Hello Brunnerpd,

 

You are not required to report the sale of home if your profit is under $250K and you lived there for atleast two of the last five years. 

 

But, if you received a Form 1099-S for the sale proceeds, you must report the sale of the home in the year that it was sold to the IRS on your tax return. In TurboTax:

 

1) Select Wage & Income Section

2) Select at the bottom the Less Common Income 

3) Select Sell of Home (Gain or Loss)

 

If you were a co-owner with a partner, you will split the basis of the property, as well as the proceeds.   

 

Hope this helps.

 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
brunnerpd
Returning Member

Home sale with 2 owners

Home is not sold yet, but preparing for when we do sell it.

Ballparking numbers. Purchase was for $400k. A second mortgage was taken for improvements for an additional $75k. And the anticipated sale will be in the $600k range.

I was just curious when a home is "homesteaded" is that for the house itself, or the individual or individuals who sell it? Meaning. We owned it for over 5 years, profits will be less than $250k, so the homestead will be in effect, but my partner will be the one collecting the profits, as opposed to splitting the profits.

Home sale with 2 owners


brunnerpd
Returning Member

Home sale with 2 owners

Ok, I'm a bit confused. I'm not sure exactly what the verbage is, but I have been told by multiple accountants that when a home in Florida is homestead, and lived in for over 2 years, the first $250k is not taxable for an individual. Like I said, I dont know how that relates to a homestead rebate, which I understand is different. But either way, I'm 99.9999% sure that unless the profits are over $250k, their will not be capital gains on it.

Home sale with 2 owners


brunnerpd
Returning Member

Home sale with 2 owners

Got it, Yes that makes sense now.

We plan on having an agreement written up showing net profits to be given to my partner. Not sure if it will be 100% or not. My partner has lived in the house full time for 5 years, but I have not. My hope is there will be no issue when issuing the profits to them, showing a small percentage to me.

 

TY!!

Home sale with 2 owners

 
message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
Manage cookies