Tax

Have a Tax Question? Ask a Tax Expert

Ask an Expert,
Get an Answer ASAP!

Tax

I have a partner and we bought a property 15 years ago and

Customer Question
we both have lived in...
I have a partner and we bought a property 15 years ago and we both have lived in the property. The house is titled in her name but we both have a percentage interest in the property. How do we both do the capital gain can we both take the 250,000 deduction each. Thanks Steve we are in Ca.
Submitted: 1 year ago.Category: Tax
Show More
Show Less
Ask Your Own Tax Question
Answered in 2 minutes by:
5/5/2016
Tax Professional: emc011075, Tax adviser replied 1 year ago
emc011075
emc011075, Tax adviser
Category: Tax
Satisfied Customers: 3,243
Experience: IRS licensed Enrolled Agent and tax instructor
Verified
Hi. My name is ***** ***** I will be happy to help you. What do you mean with percentage interest? Is there a mortgage? And if yes, whose name is ***** ***** mortgage?
Ask Your Own Tax Question
Tax Professional: emc011075, Tax adviser replied 1 year ago
To qualify for the exclusion, BOTH of you must meet the 2 year residency test, but only one needs to meet the ownership test. But if you are not filing a joint return, only the legal owner will have to claim capital gains and can claim the exclusion.
Ask Your Own Tax Question
Customer reply replied 1 year ago
yes to mortgage in her name. we have written agreements on percentage of ownership on the property we buy. I own 20% but not on title. We have both lived on the property for 18 years. How do we get a tax break?
Tax Professional: emc011075, Tax adviser replied 1 year ago
If the property is titled to her and the mortgage is in her name, she is the legal owner. If you are not filing a joint return, she is the only one who will have to claim capital gains and 250K exclusion.
Ask Your Own Tax Question
Customer reply replied 1 year ago
how do we get the best solution so we can both claim the deduction?
Tax Professional: emc011075, Tax adviser replied 1 year ago
Here's what IRS says: How your sale qualifies. Your sale qualifies for exclusion of $250,000 gain ($500,000 if married filing jointly) if the following is true:- You owned the home and used it as your main home during at least 2 of the last 5 years before the date of sale.- You did not acquire the home through a like-kind exchange (also known as a 1031 exchange), during the past 5 years.- You did not claim any exclusion for the sale of a home that occurred during a 2-year period ending on the date of the sale of the home, the gain from which you now want to exclude. If you are not filing a joint return, she needs to put you on the title if you want to claim 250K exclusion each.
Ask Your Own Tax Question
Tax Professional: emc011075, Tax adviser replied 1 year ago
Questions? Basically, if you are not filing a joint return you BOTH must meet the residency and ownership test. The only way for you to meet the ownership test is to put you on the title of the property so you have legal ownership.
Ask Your Own Tax Question
Tax Professional: emc011075, Tax adviser replied 1 year ago
I see you offline now. So if this answered your question, please take a moment to rate my response so that I may receive credit for assisting you today. You find the rating bar on the top of the page – 5 stars. However, if you need clarification, or want to discuss this issue further, let me know. Thank you.
Ask Your Own Tax Question
Customer reply replied 1 year ago
doesn't this qualify as a gift if we put me on title and as such have to pay the gift tax
Customer reply replied 1 year ago
this is not a new topic but is part of the same question. you said I could be put on title for the additional 250,000 each capital gain
Customer reply replied 1 year ago
this answer seems to be leading into a gift tax to be put on is this true?
Tax Professional: emc011075, Tax adviser replied 1 year ago
Technically, if she doesn't sell you part of the house (money will be involved), she will gift it to you. If the amount is more than 14K she will be required to file a gift tax return. But unless she already gifted a small fortune, 5.43M to be precise, she will not have to pay any gift tax. There's 14K annual exclusion but there's also 5.43M (2015 and 2016) lifetime gift tax exception. It means an individual can gift up to almost five and half millions without having to worry about gift tax. Putting you on the title will NOT increase your capital gains by 250K. It will help YOU to meet the requirements for the 250K exclusion. So instead of her claiming all capital gains and 250K, you both can split the capital gains each of you claim 250K.
Ask Your Own Tax Question
Ask emc011075 Your Own Question
emc011075
emc011075
emc011075, Tax adviser
Category: Tax
Satisfied Customers: 3,243
3,243 Satisfied Customers
Experience: IRS licensed Enrolled Agent and tax instructor

emc011075 is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,300 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,310 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

Robin D.

Robin D.

Senior Tax Advisor 4

13,695 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,651 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

R. Klein, EA

R. Klein, EA

Enrolled Agent

1,839 satisfied customers

Over 20 Years experience

< Previous | Next >

Related Tax Questions
Is the interest one pays on a personal loan a tax deduction?
Is the interest one pays on a personal loan a tax deduction? … read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,490 satisfied customers
What is the taxable capital gain for each 50% owner
What is the taxable capital gain for each 50% owner (divorced couple) on a 1031 Exchange property where only one owner meets the 2 of 5 years occupancy test and one of the 50% owners is now remarried?… read more
Chad CFP ®
Chad CFP ®
Certified Financial Planner(R), Pro
Master\u0027s Degree
738 satisfied customers
For capital gains tax can a payment plan be set up? I took
for capital gains tax can a payment plan be set up? … read more
Chad CFP ®
Chad CFP ®
Certified Financial Planner(R), Pro
Master\u0027s Degree
738 satisfied customers
Information on Gift tax return. My 100 year old mother wants
my 100 year old mother wants to gift the balance of a home loan to my brother, Balance is aprrox $35,000. What are the mechanics? … read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,490 satisfied customers
Are you familiar with Capital Gain taxes on rental property?
Are you familiar with Capital Gain taxes on rental property? … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I sold a rental property at a loss (no capital gains);
I sold a rental property at a loss (no capital gains); however should I pay the $133,000 on the principal of my house I owe 166,000 at 2.8% or buy another rental? … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Tax question is there anyway to offset a capital gain of 60
Tax question is there anyway to offset a capital gain of 60 to 70k by buying another commercial property… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Married filing jointly. AGI $170k. we have an extension for
Married filing jointly. AGI $170k. we have an extension for our 1040 My employer has a retirement plan. Wife is self employed with $6700 Net Profit on Schedule C Line 12 1) Can she contribute $6500 to… read more
emc011075
emc011075
Tax adviser
3,243 satisfied customers
We have been filing income taxes as married, filing jointly,
Hello My name is*****: What state are you in? It matters because laws vary by location. Customer: We have been filing income taxes as married, filing jointly, in California … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Estate capital gains tax rate for 61, single, unable to
estate capital gains tax rate for 61, single, unable to work, is claimed as a dependent form sister,only income collects $500 month stipend from gov., which pays for health insurance and meds. is gett… read more
emc011075
emc011075
Tax adviser
3,243 satisfied customers
Capital Gains Question: My parents have a rental property
Capital Gains Question: My parents have a rental property they bought for $150,000 several years ago. The property is now worth around $500,000 dollars with a $350,000 mortgage. They want to gift me t… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
My wife and I have always filed joint returns. We were
My wife and I have always filed joint returns. We were audited in 2003 and 04. We owed taxes. Our returns were always filed on time. We set up an installment agreement for back taxes in 2008. All taxe… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,490 satisfied customers
Does an IRS agent qualified to prepare capital gain taxes, I
Does an IRS agent qualified to prepare capital gain taxes … read more
Chad CFP ®
Chad CFP ®
Certified Financial Planner(R), Pro
Master\u0027s Degree
738 satisfied customers
I would like to stop filing a married joint return and go
I would like to stop filing a married joint return and go back to filing married single return. my wife has my return and wants to file jointly we have filed an extention 4868. … read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
Second opinion] Has the tax rate in Peru on capital gains
Second opinion] Has the tax rate in Peru on capital gains for non residents recently been changed? I heard it is now 5% and no longer 30%.… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
This year I will be filing married filing jointly. I
Good morning Pearl. This year I will be filing married filing jointly. I contriubute the max amount I can to my 401k and my spouse is close. We put some in Roth and some in before tax in our 401k. We … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I'm working on my taxes (married, filing jointly) + 2 kids.
Hi-I'm working on my taxes (married, filing jointly) + 2 kids. We make a lot of clothing donations to Goodwill. I've got receipts for a little $1k of donations. I've heard the IRS doesn't like this ki… read more
emc011075
emc011075
Tax adviser
3,243 satisfied customers
I've prepared gift tax returns for my mom's trust for three
I've prepared gift tax returns for my mom's trust for three years. I've shown 100% of all funds put into the trust in the year funded. All gifts have been in cash and are immediately available for dis… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x