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Sale of 2nd Home

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    Sale of 2nd Home

    Mother and Father selling 2nd home. They bought 2nd home 8-7-2014 for 51,000. House is in Mother, Father and SON name. Mortgage is only in Mother and Fathers name. Son was making Mortgage payments.Son lived in home
    House should sell for around 100,000. How do you handle the gain on the home?
    Last edited by Thomask; 06-13-2019, 03:31 PM.

    #2
    Without more details, it seems like each person owned 1/3 of the property and each would report their share of the sale. The son might qualify for the exclusion.

    However, it is possible there is more than meets the eye. For example, (a) if mother and father never used the home, never paid for the home, and won't receive any proceeds from the sale, and (b) the only reason they are on the mortgage and title is because the son could not qualify for a mortgage, then it could be allowable for the son to claim the entire sale (and potential exclusion).

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