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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


They only need one name and SSN, so use his. (He should not sign anything indicating that the sale is exempt from reporting because it meets the principal residence exclusion rules.)

Then when the dust settles he can reap the rewards of DIY estate planning, the gift that keeps on giving, and hire someone to see if (s)he can come up with a theory through which they can say the profit was entirely his.

Phil
Rule Your Retirement Home Fool
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