Sale of home

[rwm221]

I have a client. that in 2015 co-signed for a condo. for their son who suffers from depression.
2018 there so went into a group home, but was not tied to the home, so he spent weekends and sometimes during the week, at the condo
In September of 2022 they sold the Condo. My clients received $150,000 and their son received $10,000.
Where and how do I report the $150,000. Or doesn't it have to be reported? the bases of the condo were $100,000.

I have another client that called about a similar situation. She bought a house for her father, in 2018. He paid the mortgage. but the house was in her name. In 2022 he had to go into a assisted living home. She sold the house. Does she need to claim the profit as a sale of second home?

Thank You for your help

[Uncle Sam]

The way you've written the facts the story is quite confusing and incomplete.
"Client co-signed for a condo for their son" - Did they sign the debt instrument to purchase the condo only, or did the client purchase the condo as well?
Who lived in the home, if at all, during the time the son was in the group home?
"My clients received $ 150,000 and their son received $ 10,000" - Were the parent(s) co-owners, and at what % was owned by whom? What were the ownership %?
Sale of real estate should be reported - but how the property was used during ownership period determines the tax outcome on sale?
"The basis of the condo was $ 100,000" - How was that determined? Normally basis is determined by initial purchase price + capital improvements made after purchase.

For second client - You didn't provide enough facts to give you an answer. Was the house rental property while father lived there. Simply paying the mortgage debt doesn't
establish tax information regarding the sale. If she did not live in the house as her primary residence, then yes - the sale has to be reported.

[rwm221]

For client 1 with the condo, they cosigned the loan and are also on the title with their son. Owner ship was 50/50. No one lived in the house except their son at any time. Even when in the group home he stayed at the condo on weekends and sometimes a few days during the week.

Client 2 - The house was not a rental property. The house was in her name and the father lived there and paid the mortgage.

[TaxGuyBill]

Owner ship was 50/50. .

If the ownership was 50/50, why did your client receive $150,000 and the son only receive $10,000? Do the two 1099-S forms shows $150,000 and $10,000?