What is the name of your state (only U.S. law)? Florida
My sister and I own an investment property which we are selling. On the deed, my sister is listed as having a life estate, and I am the remainderman. We plan to split the proceeds 50-50. Both of us will be subject to 15% capital gains and the 3.8% Medicare surtax:
Q: Do we report the sale and submit the capital gains tax due on her tax return, or on both of our tax returns (50-50)?
Q: If the sale/taxes due are reported on both tax returns (50-50), how do we document the 50% split on the returns?
Thank you!
My sister and I own an investment property which we are selling. On the deed, my sister is listed as having a life estate, and I am the remainderman. We plan to split the proceeds 50-50. Both of us will be subject to 15% capital gains and the 3.8% Medicare surtax:
Q: Do we report the sale and submit the capital gains tax due on her tax return, or on both of our tax returns (50-50)?
Q: If the sale/taxes due are reported on both tax returns (50-50), how do we document the 50% split on the returns?
Thank you!