Skip to main content
Message Font: Serif | Sans-Serif
 
No. of Recommendations: 3
The portion that you (and your brother) used as your principal residence will qualify for the home sale exclusion. EACH of you will be able to exclude up to $250k from your share of that portion of the gain.

The portion that has been rented out will not qualify for the exclusion and will be taxable. Since you've been reporting as a partnership, the sale of the rental portion of the property should probably be reported on your partnership return.

I trust that you've been splitting up the property expenses (mortgage interest, taxes, insurance, utilities, etc.) correctly in the past. Your personal share of these expenses goes on your individual returns to the extent these are deductible. The portion for the rental should have been reported on the partnership return.

--Peter
Print the post  

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.