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Taxes on Sale of Second Home owned w/ Mom

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robnbill

Guest
What is the name of your state? VA
In 1995 my Mom & I purchased a condo - for my Mom to live in. I paid the mortgage and taxes - but I lived in my primary home. The condo was held in joint tenancy with the right of survivorship. Mom died in Jan 2001. I sold the condo in Apr 2002. I assume the basis is what we paid jointly for the condo in 1995? On the condo for my 2002 return, how do I treat the profit on the condo? Thanks.
 


sloodanka

Junior Member
Can you please tell me who was responsible for paying taxes? If you how did youu report condo at the end of the year? As your residence or as a rental or something else? Thanks
 
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robnbill

Guest
Since the condo was owned jointly by my Mom and me, we were both responsible for the taxes. However, my Mom's share was abated since she met certain age and income requirements. The balance of the taxes was always paid by me. I paid the mortage completely. She paid for the utilities and the HOA fees. After my Mom died, the condo sat empty - no rental income. Thanks for any advice.
 

abezon

Senior Member
When two people own property JTROS, the full value of the property is included in the taxable estate of the first person to die. The surviving owner gets a stepped up basis to the fair market value of the property on the date of the first owner's death.

You report the sale on Sch.D as sale of second home. The purchase date is 1995; the basis is the FMV on date of mom's death. For the adjusted basis, add the costs of sale. You pay long term capital gains on any profit. Probably not much with only a year to appreciate.
 

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