How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Stephen G. Your Own Question
Stephen G.
Stephen G., Sr Income Tax Expert
Category: Tax
Satisfied Customers: 6168
Experience:  Extensive Experience with Tax, Financial & Estate Issues
30050794
Type Your Tax Question Here...
Stephen G. is online now
A new question is answered every 9 seconds

My mom and I owned a condo together and just sold it. I had

Customer Question

My mom and I owned a condo together and just sold it. I had a loan out and she didn't. Escrow paid my loan off and then split the money 1/2 and 1/2 which was not supposed to be the case. We are 50/ 50 owners but the loan was only in my name. will this mess up taxes?
Submitted: 1 year ago.
Category: Tax
Expert:  Stephen G. replied 1 year ago.

Well, it depends upon how the 1099s are issued. In theory, if you were 50-50 owners & it wasn't either of your personal primary residences, the 1099-S should be issued equally to each of you (which reports the gross sales price 50% to you & 50% to your mother); then it is up to each of you to report 50% of the transaction on your tax returns and to settle up the split of the proceeds between the two of you. That proceeds split will have nothing to do with the tax reporting.

Questions?

Customer: replied 1 year ago.
Thank you! If there is a loss on property value, do we have to indicate anything now, or just when we do our taxes?
Expert:  Stephen G. replied 1 year ago.

Just when you do your taxes. However, if this was personal use property (verses a rental), any loss would be reportable, but not deductible. Any gain would both be reportable & subject to capital gains tax.

Expert:  Stephen G. replied 1 year ago.

Questions?

If not, please remember to rate my response as that is the only way we receive credit for our work.

If you'd like to reach me again here at JustAnswer.com, just ask for "Steve G." at the beginning of your question.

Thanks very much for using JustAnswer.com

Steve G.

.