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Tax liability on co-owned home for sale

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mascorpio

Junior Member
What is the name of your state? OHIO

My mom and I co-own a home, I have verified my name on the deed (albeit my maiden name). I have never reported it on any taxes, I have not lived in the home with her for about 8 years. We are selling the home, how will this affect my income tax reporting/where can I find tax rates for what I may owe from the sale?

Thanks in advance.
 


It depends upon how you own your portion of the home. If it was a gift to you then your Mom or whomever gave it to you should have filed a gift tax return and paid gift tax on the amount greater than the minimum of $10,000 or $11,000 at the time of the gift. You owe no income tax on the gift itself. Your basis will be the donor's carryover basis on your portion. You will have capital gains on that portion when the house sells.

If you purchased it from her, then your capital gains will be calculated on your portion of the proceeds less your cost.

Either way since it's not your primary residence for two of the last five years you will have capital gains. Since your Mom has lived there for two of the last five years she can exclude up to $250,000 gain if single and $500,000 if married.
 

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