My brother, sister and I are all going in on a condo together. My sister will be the only one on the mortgage and all three of us will be on the title. We are each contributing one third of the down payment (my sister pays the full amount and we give her a check for one third). My sister will consider the condo her primary residence and will pay the mortgage and all expenses, including property tax. We would like to verify that we are thinking through the tax treatment properly?

For tax purposes we are planning to have her to itemize the full amount of interest and property tax since she is paying 100% of both and treating as her personal residence. When we sell the property, my brother and I plan to each recognize a capital gain equal to one third of the sale price, less the remaining mortgage, less our portion of the down payment. If my sister lives in the property for the right number of years (I believe 3) she will not recognize any gain on the sale since she is treating as her personal residence.

Thanks for your help!