Sold Rental Property

Forum|Forum|2 years ago
February 13, 2024
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My boyfriend and I owned a rental property together. We recently sold the rental and made a decent profit. I did not collect any of the profit and it went to his bank account. I was on the deed and I signed when we sold the house. Do I have to claim this on my taxes since I did not take any profit? Can he claim the entire sales on his taxes instead?

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KrisD15

No, you would need to split the sale of the property if you each owned half. The fact that the money went into one account is immaterial although if only your boyfriend has control of that money, the IRS might see this as a gift. Gifts don't generate tax for either of you, but if over the yearly limit, you would need to file a gift tax return.

As far as the rental portion goes, there would be Depreciation Recapture and possible capital gains to report on the sale.

If you had a written agreement where only one of you claimed the Schedule E for reporting the rental activities, that person would need to claim the Depreciation Recapture. If you shared the rental income, you would share the recapture.

HERE is another discussion on the topic.

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