If Shane's share of the house, which was 10%, is the result of putting $3600 into the house whose purchase price was $125,000, then perhaps there is something in the Deed that says Shane is a 10% owner, with uncle and dad having other percentages listed. Perhaps I am misreading things and $3600 is what Shane contributed in cash to the fix-up. But I observe 10% of $125,000 is $12,500.True, but if there was a mortgage, a 10% share wouldn't necessarily have cost $12,500. A $125,000 house with a $100,000 mortgage would have cost only $2,500 for an initial 10% buy-in, plus his share of improvements and mortgage payments. Regardless, for tax purposes his basis is going to be what he put into it.So here's my question: despite whatever money Shane may have put in, either in the purchase price or contributions to the repairs, is his share of the capital gain 10% if that is his ownership percentage on the Deed?The capital gain is figured by owner, not by property. Thus, his gain will be his share of the proceeds minus his basis.As a secondary question, if no percentages are listed on the Deed and the property was held either as joint tenancy or tenancy in common, is Shane held to have had 1/3 of the gain?This is a property, not a tax, law question, and the answer would depend on state law.TMF ExROPhil MartiHelping breathe life into dead horses since 1912
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