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Financial Planning / Tax Strategies
|Subject: Condo sale exclusion?||Date: 7/28/2011 8:26 AM|
|Author: Goofyhoofy||Number: 113815 of 122629|
Mrs. Goofy's father (age 87) owns a condo, which he is selling. Several years ago he put one of the daughter's names as "co-owner", even though she has never lived there, paid rent or mortgage, common fees, or had anything else to do with the property. (This is in Pennsylvania, FWIW.)
Because of a divorce, he owned both the house that the mother lived in and the condo for a concurrent period of two decades. What happened with the sale of the house I don't know; I'm investigating.
The condo is his principle residence, and has been for 30 years. Now that the condo is being sold, is the daughter responsible for half of the capital gain (and cannot shield the proceeds by the rollover rule), or can the father use the exclusion rule to shelter all the profit (which is modest, but meaningful to him at 87 years old.) [He is living with the daughter now.]
The title company is insisting on filling out a form assigning the tax consequences within the next three days (why, I don't know), while he doesn't even have an accountant anymore (died) or lawyer (long since.)
1) Is there a need to fill out this info so quickly, before we can find a competent CPA or other?
2) Opinion on the tangle of ownership and profit exclusion.
Thanks for any help; if I've failed to include some piece of relevant info, just holler.
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