Capital Gain on a property jointly owned with parents

[webuser]

What is the name of your state?What is the name of your state? VA

I jointly own a property with my parents and it was all of our primary residence until I moved out 6 years ago. It has continued to be my parents' primary residence until now. During the entire duration of our ownership, I have been solely responsible for the mortgage payments.

We are evaluating sale of property and I wanted to understand how house sale capital gain taxation and exclusions would apply to each of us.

Thanks in advance.

 

[abezon]

The sale will be treated as separate sales: your & theirs. They can exclude up to $500,000 of gain on the house since they owned it & lived in it for 2 of the 5 years prior to sale. You will not be able to do so & will pay capital gains taxes on your share of the profits. This is probably 15%.

 

[webuser]

Is my share automatically 1/3 since there are 3 names on the title, which includes my dad, my mother and I.

Thanks again.

 

[abezon]

Depends on how the title is worded & state law. For example, if it reads M&D, Husband & Wife, as Joint tenants with right of survivorship with Son", I would read that as they have 1/2 & you have 1/2. If it says "M & D & S as JTROS", I'd interpret that to mean everyone owns 1/3. If your state allows unbalanced ownership with JTROS, the split is however the deed describes it. If ownership is as tenants in common, it can be split any way.