two sisters jointly own their common main house. when they sell, how are they going to share the tax exemption?

6 Answers

  • 6 months ago

    They each get a $250K exemption on profits.  Very few people realize such a profit anyway.

  • 6 months ago

    Each person get a $250,000 exclusion

  • danxp2
    Lv 6
    6 months ago

    Is your question about the 250,000 single or 500,000 if married exemption allowedon a gain of a primary residence?

    If you are, each sister gets their $250,000 exemption on their own portion of any gain from the sale of the house, assuming they otherwise qualify for it. 

    I know there are large communes that shared ownership of building/land all living there, and sold the building/land and each member tried to claim the full 250/500k exemption on the sale of their shared primary residence. The IRS tried to say they all needed to split the exemption between the 20 people or so. I believe the courts decided to side with the property owners and each got to exclude the full 250K. I don't have the time or care enough to look making sure I remember the outcome correctly though.

  • Anonymous
    6 months ago

    Each is treated as selling their half of the house.

    eg, if they qualify, each is eligible to exclude up to $250,000.

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  • G
    Lv 5
    6 months ago

    Pain always ends in being honest.

  • Anonymous
    6 months ago

    What tax are you referring to?    Capital gains?

    If the gain is larger than the exemption, split with the same ratio as the proceeds/ownership. 

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