Capital gains tac

Forum|Forum|3 years ago
July 3, 2022
3 replies
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I was added to the title of my parents home. They have meet ownership and use, I meet ownership but not use. We need to sell as my mom can no longer get around the house due to balance issues. Can I claim a partial exclusion?

Best answer by Anonymous_

@Eugene613 wrote:

I meet ownership but not use. We need to sell as my mom can no longer get around the house due to balance issues. Can I claim a partial exclusion?

You actually answered your own question; you cannot claim the Section 121 (home sale) exclusion because you do not meet the main home use test.

See https://www.irs.gov/taxtopics/tc701

Anonymous_Answer

Employee

@Eugene613 wrote:

I meet ownership but not use. We need to sell as my mom can no longer get around the house due to balance issues. Can I claim a partial exclusion?

You actually answered your own question; you cannot claim the Section 121 (home sale) exclusion because you do not meet the main home use test.

See https://www.irs.gov/taxtopics/tc701

Bsch4477

Employee

No, since it was not your primary residence.

Mike9241

consult a real estate lawyer. you may want your name taken off the title. since they meet the ownership and use test they would qualify for the full $500,000 exclusion.

if that can't be done or the lawyer advises against it your parents would still qualify for the exclusion on their portion of the sale. you would not.