Whats the IRS criteria for a none 2yr house owner for a Boyfriend and girlfriend who lost her job?My girlfriend lost her job, we sold her house(i'm on title only) then my parents gave me money to buy one.. We sold our house 8 days before our 2yr anniversary.
2007-03-01 03:12:00 · 3 answers · asked by rosedude8 1 in Business & Finance ➔ Renting & Real Estate
When you sell a house, you only pay taxes on the gain, not the entire selling price home. Since you and your girlfriend are on the title of the house, you are both co-owners.
IRS Publication 523 Selling Your House goes over the details of establishing the basis of your house, and figuring the gain.
You say you did not live in the house for 2 years, but since the house was sold due to lost of employment, you are eligible to exclude a portion of the gain. That portion will be exempt from taxes. There is a worksheet you can use to figure your reduced maximum exclusion.
http://www.irs.gov/publications/p523/ar02.html#d0e1939
Your parents can give you a gift to buy another house. That money is not taxable to you. It might be taxable to them.
If it is a private mortgage loan your parents gave you, instead of a gift, then the interest you pay on the loan could be a deduction for you reported on schedule A of Form 1040.
2007-03-04 07:39:07 · answer #1 · answered by AngeloElectro 6 · 0⤊ 0⤋
If you didn't stay in the house a full two years, you can't take the capital gains exemption. The tax laws are VERY specific about this. You MUST stay in the home for two years.
2007-03-01 11:15:08 · answer #2 · answered by Scotty Doesnt Know 7 · 0⤊ 0⤋
This question is absolutely incomprehensible.
Check the IRS website. Maybe you can find your answer there.
www.irs.gov
2007-03-01 11:15:38 · answer #3 · answered by MOM KNOWS EVERYTHING 7 · 0⤊ 1⤋