Posted by Jk on October 30, 2003 at 01:21:12:
Sounds like a question for your tax advisor. If it was truly your Mom’s primary residence, she was making the payments, and the check from escrow is being made only to her, then she should be able to take the home owners exemption for up to 250K if single or $500k married. BTW a 1031 is only for like kind investment property.
Tax due on tenant in common for sell of property - Posted by john
Posted by john on October 29, 2003 at 18:50:16:
Ten years ago, my mother bought a house in Los Angelas for $300,000 to use as her primary residence and
she included my brother and I on the Title.
My brother and I don’t live in the house and she’s being making all the payments.
Now the house is worth $500,000 and she wants to sell it.
My questions are
Can my mother claim all the $200,000 capital gain on the house and not pay any taxes since she lived there 2/5 years?
Is there be any tax consequence for my brother and I?
Tax due on tenant in common for sell of property - Posted by JHyre in Ohio
Posted by JHyre in Ohio on October 30, 2003 at 07:55:09:
Depends who REALLY owns the house. If you were on title just to help with financing or the like, but she REALLY owned it (made all the payments, lived in it without children, etc.), I’d treat it as her and take the full exclusion. If, on the other hand, you truly co-owned it, she gets the exclusion for her portion of the property and the other co-owners, if not residents, have capital gains tax exposure but can use 1031 to get around it…depends on the facts and how aggressive you care to be.
John Hyre
Tax due on tenant in common for sell of property - Posted by John C
Posted by John C on October 29, 2003 at 19:11:39:
As far as I am aware, there are no capital gains taxes on personal property that has been lived in for 2 or more years. However, if there is CGT then she can do what is known as a 1031 and use the profit to purchase a new house tax free. I can’t promise that this is according to California law though.
Re: Tax due on TIC for sell of property - Posted by John
Posted by John on October 29, 2003 at 23:59:12:
Thanks for the reply John C.
But I wander if mom can claim 100% of the Capital Gains, thus my brother and I don’t have to paid CGT, since we don’t live in the property?