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Selling House to Child

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jlcl

Member
What is the name of your state? California

My husband and I owned 50/50 of our primary residence we held in our trust let's say called Peter & Jane Doe's Trust. Peter does not qualify for home sale exclusion as he has not lived in the house 2 out of past 5 years, but I qualify for home sale exclusion. I want to sell 50% of my share of the house to my child to take advantage of the home sale capital gain exlusion. For the home sale agreement, how do I specify that the property sale transaction is for Janes' 50% ownership of the property in the trust. Should the "seller" on the contract be: Peter & Jane's Trust or should the seller Jane Doe even though the owner of the property is the trust?

I'm planning to just buy a standard contract to complete the transaction for the sale. I want IRS to know that my child's purchase is for Jane's piece not Peter's piece of the property. Please advise. Thank you.
 


Snipes5

Senior Member
If you are wealthy enough to need to have your house in a trust, pay someone to solve this one for you, it's a bit much for free advice over the internet.

Snipes
 

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