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    Thread: Capital gains on house sale-Accountant needed

    1. 11-21-2016 03:53 PM #1
      my dad and I bought a house together in 08, well he bought it and I did the renovations and repairs but we were listed as joint owners. I lived there up until October of 2013 and then moved, after moving I finished up all the renovations and put the house up on the market. We finally sold the house in April of this year and I have some questions regarding capital gains taxes. I lived there for 2 of the previous 5 years so I should be exempt from capital gains. What about my dad? He never lived there but was a joint owner. We sold the house for $174k and had around $150k invested. So if he is liable for capital gains on his portion I would assume he owes on $12k, correct? Thanks

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      11-28-2016 08:13 PM #2
      Was the house a primary residence for you and your dad?

    4. 11-30-2016 11:37 AM #3
      primary residence for me, my dad lived elsewhere.

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      12-16-2016 01:03 PM #4
      Quote Originally Posted by formula14 View Post
      my dad and I bought a house together in 08, well he bought it and I did the renovations and repairs but we were listed as joint owners. I lived there up until October of 2013 and then moved, after moving I finished up all the renovations and put the house up on the market. We finally sold the house in April of this year and I have some questions regarding capital gains taxes. I lived there for 2 of the previous 5 years so I should be exempt from capital gains. What about my dad? He never lived there but was a joint owner. We sold the house for $174k and had around $150k invested. So if he is liable for capital gains on his portion I would assume he owes on $12k, correct? Thanks
      Your dad doesn't meet the residency test, so he would have to report his portion.

      but first, take a look at publication 523 and figure out exactly what your gain is. You may be leaving out some items that would decrease your gain.

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