Sale of Home

Forum|Forum|1 year ago
August 11, 2024
1 reply
22 views

Single, New Jersey resident client has a home in South Carolina. She and her son are listed on the deed. Her son has lived in the South Carolina home for the past ten years as his primary residence. My client has paid most of the home's taxes and mortgage. I do not prepare the son's tax return or know his financial information. Can the son exclude the gain on the sale of the home on his return??

I did read through Publication 523, Selling your Home. I didn't see an exclusion that would prevent him from claiming the exclusion, but I may have missed something.

Appreciate any input from those who have experience with this scenario. Thank you.

ProSeries Professional

BobKamman

Level 15

He can claim the exclusion on his share of the gain, assuming he has been an owner for the required period and not just someone who recorded a quitclaim deed from Mom last month.

GodFather

Author

Intuit Community Champion

Thanks for replying, Bob. "His share of the gain" I assume that means 50%, since they are co-owners...unless there is some other way to calculate his share? Is it based on expenses they have shared?

IRonMaN

Level 15

Unless there is some agreement stating that he only owns 37.372794453781% (or something like that), I would go with 50% due to joint ownership.

Slava Ukraini!

Sign up

Login with SSO

Let's get you signed in

Login with SSO