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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 10149
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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Bought a house 50/50 with my daughter. I reported 100% if

Customer Question

bought a house 50/50 with my daughter. I reported 100% if income/expense including depreciation in my income tax. sold house in 2015. Form 1099S was sent to each of us proceeds. How is sale to be reported? Can I report the full amount of both 1099S?. Do each of us (mother and daughter have to report 1099S in our own income tax? If that is the case, can my daughter use half amount if there were not reported in her tax return?
Submitted: 8 months ago.
Category: Tax
Expert:  Lane replied 8 months ago.
Hi, yes the taxation follows ownership. In the event of any audit, they will look to the deed... Essentially, (if you owned jointly) everything should be split
Expert:  Lane replied 8 months ago.

Hi, Just checking to see if you saw my answer.

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Again, you DO each need to report, but you each only report 1/2 (if you own 1/2).

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And, sorry to be the messenger here, but that depreciation should have been reported by both as well, so that your basis is 1/2 each too. Taxation follows ownership ... If you really want to dot the i's and cross the t's here, you'd go back and amend. There IS a form that can be used to change the depreciation retroactively ,,, but you should contact a local CPA or Tax attorney. The form can be complicated:

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Form 3115: https://www.irs.gov/pub/irs-pdf/f3115.pdf

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Please let me know if you need more here

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But if this HAS helped, and you DON’T have other questions … I'd really appreciate a positive rating (using the rating request, faces, or stars on your screen)

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That’s the only way JustAnswer will credit us for the work here.

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Thank you!

Lane

I hold a JD (Juris Doctorate, a doctoral degree in the law), with concentration in Tax Law, Estate law & Corporate law, an MBA, with specialization in finance & tax, as well as CFP® and CRPS designations. - I’ve been providing financial, Social Security & Medicare, estate, corporate & tax advice since 1986.

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