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I recently sold a summer cabin that was owned jointly with a sibling. The income was split between the two of us. My question is - what sort of capital gains tax will I have to pay on my amount? Is this amount added to my AGI when I do my taxes?
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<<I recently sold a summer cabin that was owned jointly with a sibling.>>

How did it become jointly held? That's the crux of the issue. If the sib paid FMV for his/her share of the property, the answer would be different when compared to your gift of half of the property to your sib.

<< The income was split between the two of us. >>

As is generally required in these types of transactions.

<<My question is - what sort of capital gains tax will I have to pay on my amount?>>

If this was nothing more than a second home, and not a rental property, your maximum capital gains is likely the preferred maximum rate of 20% (10% if some of your income is in the 15% bracket).

<<Is this amount added to my AGI when I do my taxes?>>

Yup...but then you use a special tax computation on Schedule D to compute the preferred capital gains taxes. You can read more about this in the Taxes FAQ area.

TMF Taxes
Roy
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