Solved

Co-owner took all the property gain. Who responsible for the property gain tax?

Forum|Forum|6 years ago
April 27, 2019
1 reply
0 views

Me and my co-owner owned a property. (Two specifically named individuals that are not related or married to each other)

Co-owner stayed at the home as primary residence. I never stayed in the property.

Co-owner will take all the profit when the house is sold.

Does co-owner needs to pay property gain tax as he stays at the house more than 5 years?

Am i supposed to pay any tax if i don't get any money when the house sold?

Thanks.

Best answer by Anonymous_

A

Anonymous_Answer

D

devilgeminiAuthor

@devilgemini wrote:
Am i supposed to pay any tax if i don't get any money when the house sold?

@Anonymous_ wrote:

Technically, yes, since you have a 50% (undivided) interest in the property as a co-owner and are entitled to the proceeds (even if you don't receive them as a result of relinquishing your right to the funds to another party).

You are otherwise responsible for your allocable share of any gain.

Thanks for the response. Title company will cut a check for the proceeds to co-owner only. I am not receiving money from escrow and i will not receive any 1099s either.

How am i supposed to pay the tax for the money i never received?

/