Hello,

In 2008 we purchased a coop apt. in NY for our daughter to live in. We added our daughters name to the "deed" (it was a coop apt so she was a JT in the shares we owned) in Dec 2014. She lived in the apt through 2013 when she moved to another apt in the bldg (we then started using it as a 2nd home). We sold the apt 7/20/2017. Question 1: Is the Cap Gains exclusion determined as of the sale date or for the 5 years before the sale. In other words, does the 5 years use requirement start 7/20/12 or 1/1/12? If it starts 1/1, she meets the 2 out of 5 year requirement (her principal residence for 2012 & 2013). Question 2: Does the fact that she didn't acquire an ownership position until 12/2014 affect this? Thanks in advance for your time.

In 2008 we purchased a coop apt. in NY for our daughter to live in. We added our daughters name to the "deed" (it was a coop apt so she was a JT in the shares we owned) in Dec 2014. She lived in the apt through 2013 when she moved to another apt in the bldg (we then started using it as a 2nd home). We sold the apt 7/20/2017. Question 1: Is the Cap Gains exclusion determined as of the sale date or for the 5 years before the sale. In other words, does the 5 years use requirement start 7/20/12 or 1/1/12? If it starts 1/1, she meets the 2 out of 5 year requirement (her principal residence for 2012 & 2013). ======>>>the time period when she actually began to live in the coop;for example, say, On Jan 1, 1998, B bought a home and began to live in it. On Jan 1, 2000 (24 months after purchasing the home), B moved out of town and began to lease the home. On Dec 28, 2002, she sells the property. Because B owned and used the home as a principal residence for 24 months during the 5-year period ending on the date of sale, she is eligible for the gain exclusion. If, however, B sells her house on Feb 1, 2003, the 5-year period would have begun on Feb 1, 1998. In this case B would not be eligible for the gain exclusion because she would have lived in the home for only 23 months during the 5-year period before the date of sale.







Question 2: Does the fact that she didn't acquire an ownership position until 12/2014 affect this?======>>>> If all of you co-owned and used the house as your principal residence for at least 2of the 5 years prior to the date of sale, you?ll each will be entitled to benefit from the special home-sale tax exclusion. Unless you're listed on a property's deed, you can't be considered its legal owner, even if you are paying its mortgage. All persons listed on a property deed also have ownership rights and responsibilities. When you purchase a home and you sign your documents at loan closing, one of the documents that you are going to sign is a deed for your home.The deed establishes your right to claim ownership of the property.you may contact a legal adviser for more info in detail

The Smiths have been happily married 30 yrs and are in their 50sIn 2016, Mrs. Smith inherited a home in Georgia, and moved there from TN, taking up residence and changing her car tags, license, and voter registration.Mr. Smith continues to live and work in TN. His employer pays the expenses for his domicile in TN (rent, utilities, cable) as an incentive for Mr Smith to stay. He has a TN license and is registered to vote in TN.Mr. Smith visits his wife's home in GA about a week out of each month, sometimes "working from home". The Smiths have always filed a joint tax return. Mrs. Smith no longer works outside of the home, but makes a very meager living selling things online, for which she pays Schedule C taxes. (She has yet to make enough to be required to file under GA law).
For 2016, the Smiths filed as residents of TN, where there is no state tax.They want to make sure they file properly re state taxes, and not get 'dinged' later.
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Question:
Should the Smiths for tax year 2017 file as full-time residents of GA?=========>>>>>>>YES IT IS UP TO you;ONCE you and your spouse both agree to file jointly; if you don't, you have to file separately. ALSO, ONCE you meet the IRS definition of a married couple. If you qualify, you can file a joint return when living apart, as long as you're not legally separated.
or
Should they file with their residency situation separate, with Mrs Smith being full time and Mr. Smith part time based on the time he works in GA?=====================>>>>>>>>..AS SAID PREVIOUSLY THEY FILe EITHER mfj OR mfs ON THEIR GA RETURNS;IF THEY FIle mfs THEN MR SMITH NEEDS TO FILE HIS return with GA on his GA source income and claims it on sch A OF 1040 SINCE NO STYATE TAX IN TN while mrs smith files her GA return as a full time resident of GA.mr Smith may file his GA return on his GA source income that he earns in GA and claims it on his SCh A of 1040 aslongas he itemizes his return on 1040.Or if they want both of them may jointly file GA return on her GA source and his TN/G source income to GA and claims his TN source income on his sch a OF 1040.