Does anyone know how to report gain on a sale of a home when the gain is to be divided among 4 persons, 3 of them were not on title.
2007-02-13 09:35:27 · 4 answers · asked by Patricia G 1 in Business & Finance ➔ Taxes ➔ Other - Taxes
The 3 persons not on the deed get no benefit at all. No proceeds, no exclusion, and no tax liability. The person on the deed gets the gain and excludes it if eligible. Any gain not excludable is subject to tax as appropriate.
If the person whose name was on the deed decided to share the gain with 3 other persons, there could be Gift Tax consequences for the giver of the gifts if the amount exceeded their annual or lifetime exclusion amounts.
2007-02-13 11:56:12 · answer #1 · answered by Bostonian In MO 7 · 0⤊ 0⤋
How do three people get a share if not on the title? If there is a will and the four people are heirs with equal shares, someone has to get named executor of the estate, the executor sells the house then divides the proceeds.
Under those circumstances, there is no gain to pay taxes on. Inheritance tax laws apply.
2007-02-13 17:42:00 · answer #2 · answered by regerugged 7 · 0⤊ 0⤋
The one on the title reports the gain. Were I he, I'd split with the other 3 in such a way that I got a larger piece of the action to offset the tax hit.
2007-02-13 17:42:39 · answer #3 · answered by tain 3 · 0⤊ 0⤋
Only the legal owner can claim the gain.
2007-02-13 18:10:09 · answer #4 · answered by LC 2 · 1⤊ 0⤋