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Old 04-13-2017, 12:30 AM
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Co Ownership of home that has been sold

I co-owned a home with another person. We sold the home and now need to provide all info from the sale on each tax return. Everything was split down the middle at the purchase and all mortgage payments. Since we each file separately, do we divide all the purchase and seller expenses in half as well?



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Old 04-15-2017, 09:10 PM
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in geenral Correct; Each joint owner is normally entitled to a 50% share of the property. If you contributed unequal shares to the mortgage or the deposit you should reflect it on your return; for jointly owned property, you are entitled to deduct the actual amount of interest or taxes that you paid. If you and your partner contribute equally to the expenses, you can each take 50 % of the deduction. Often, however, dividing the deductions will result in the highest total tax, because neither partner will have enough to itemize. In many cases it is most advantageous for the person with the highest income to take all the deductions, which will provide the biggest decrease in taxable income. You might find it helpful to prepare your tax returns three times: taking the standard deduction; itemizing using your percentage of the deductions; and itemizing using the full deductions on the tax for the partner with the highest income. you need to compare the results with those of your partner's for example, if you take the standard deduction and include none of the deductions for property, and he itemizes the full amounts allowable on the property and you need to determine which scenario results in the lowest net tax in total on the two returns



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Old 04-17-2017, 12:02 AM
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Co-Owner of house that has been sold

Thank you very much! I was on the right track. Will do!



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Old 04-17-2017, 12:16 AM
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CoOwnership of home that has been sold

One more question.... Should the purchase and sale of the home be the total listed price or should it be divided in half? Example: Purchase of house is
$100,000. If everything is 50/50, should I report the $100K or $50K? Same question for the sale price.



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