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MY brother and I bought property together for 50,000 it sold for 99500.00. the property is only in my name but we are splitting the profits ( 49500.00 ) I lived in the home over a year but not the required 2 years. We both agree to split capital gains. I thought because I am in the 15% tax bracket I wont have to pay capital gains, is there anyway ,I can report giving him half, so I am not liable for full profit just half since that is what I am getting....

Submitted: 235 days and 4 hours ago.
Category: Finance
Value: $9
Status: AWAITING CUSTOMER ACTION
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Coldspring , Texas

Answer

On your tax filing simply list the property as a 50% ownership and your brother would do the same on his filing. It would have been smarter to have your brother's 50% share of the proceeds paid out at the closing and show up on the settlement sheet document. However, if you keep proof of making the payment to hime you will be fine. The capital gains tax cannot be avoided but it can be less than 15% if a persons income is low enough to qualify.

Dennis (cut2it)

PS... Your true profit will not be $49,500 since all of the closing costs are deductible items.

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Expert: Dennis M. Smith
Pos. Feedback: 99.2 %
Accepts: 
Answered: 4/2/2009

NCP

Investment R.E. Broker 30 yrs. & past owner of Mortgage Brokerage Company.

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