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I assume - the condo was inherited - correct?If so - we need to know the fair market value at the time the decedent passed away - that would be the basis.
When eventually the condo is sold - the taxable gain will be calculated as (selling price) MINUS (basis)
So if the condo is worth $100000 and later you sell it for $105,000 - your taxable gain would be $5000.
Regarding mortgage payments - the issue is that the mortgage provider has a registered lien on the property - and if the mortgage is not paid timely - there are additional charges which have to be paid anyway - otherwise all fees will be taken out when the property is sold.
Similarly real estate taxes - all must be paid when the property is sold and the title is transferred to the buyer.
If there are several co-owners - that is between you and your sister who will make payments related to that property.
Regarding proceeds and taxable income - these are divided according to percentage of the ownership. So - if you and your sister are equal owners - proceeds are divided equally.
Let me know if you need any help.
Yes - as each of you own equal shares - proceeds and expected taxable gain will be divided equally.
When the condo eventually will be sold - each will report on the tax return the sale of 50% interest in the property each of you own.
Regarding facts that your sister is using the condo and that she pays mortgage and other expenses - generally you need to value the use and compare expenses she pays - and that is a civil matter between you and your sister.
Generally in similar situations - if your sister wants to own the property - the property should be transferred to her name only and she should refinance in her name only and pay you your share from that refinanced amount. After that you will not own the property and will not be responsible for the mortgage or other fees associated with the condo.
But again - that is between you and your sister.
Yes - correct.If your sister is not able to buy you out - there are two options - either you sell the property and divide proceeds ORyou just allow your sister to use the property and she would pay you some rent - probably less than the fair rental value or might be living rent free - and that is a civil matter between you and your sister.However - as you are equal owners - when eventually the property is sold - proceeds are divided equally - but if you both agree - the division might be different - otherwise - proceeds are divided according to the percentage of the ownership.
Whatever your sister thinks - and whatever you think is not relevant. If you do not agree on terms - either party may sue - but I hope you will have satisfactory agreement.
Otherwise - proceed from sale will be divided equally.
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