Sale of primary home by unmarried couple.
My significant other and I are unmarried. Having met all requirements, we sold our home in May 2005. My partner was primary buyer and I the secondary or co-buyer (added to title immediately after purchase). We just received our final settlement from the lender in my partner's name only, mine is not included. Strange, because the monthly statements and payment stubs always did...
Question: while I realize that we are entitled to a tax free profit of up to $250,000 each as we met all the requirements, do we both claim our 50% or just let my partner (primary owner) claim it all? If we did that, however, it would look as if my 50% were income received from my partner as a gift and would therefore become taxable, wouldn't it? I have to report interest earned on the profits, which I placed into savings, how can I properly explain/report where the principal came from when I wasn't included on the lender's final settlement form?
My significant other and I are unmarried. Having met all requirements, we sold our home in May 2005. My partner was primary buyer and I the secondary or co-buyer (added to title immediately after purchase). We just received our final settlement from the lender in my partner's name only, mine is not included. Strange, because the monthly statements and payment stubs always did...
Question: while I realize that we are entitled to a tax free profit of up to $250,000 each as we met all the requirements, do we both claim our 50% or just let my partner (primary owner) claim it all? If we did that, however, it would look as if my 50% were income received from my partner as a gift and would therefore become taxable, wouldn't it? I have to report interest earned on the profits, which I placed into savings, how can I properly explain/report where the principal came from when I wasn't included on the lender's final settlement form?
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