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 Jacy Your Own Question
Jacy, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 568
Experience:  Nine years individual income tax preparation and consulting
Type Your Tax Question Here...
Jacy is online now
A new question is answered every 9 seconds

My sister and I owned a house together and I recently sold

Customer Question

My sister and I owned a house together and I recently sold my half to her. She paid me
seventy thousand dollars. I am in the 15 percent tax bracket. Since this is a long term
capital gain do I have to pay taxes on this money?
Submitted: 6 years ago.
Category: Tax
Expert:  Jacy replied 6 years ago.



This depends. Was this house your principal residence for at least two of the last five years? If so, then no, you do not have to pay tax on the gain.


If this was not your residence, then you would need to report the sale on Schedule D if you have a gain. The gain is $70,000 less your cost basis in the property.


Thank you for your question. Let me know if you need additional help by clicking the Reply button.