Originally Posted by BBPeik
As you said you coown the home with your parents, so actually on the sale of the hoem you won?t owe any tax to IRS/your home state
If I am taking all of the profits from the sale as one of teh owners then Shouldn't I be required for the taxes. Sorry I am a bit confused by your ending comment.
If I am taking all of the profits from the sale as one of teh owners then Shouldn't I be required for the taxes.=====> as said,Tax laws allow you to take up to $500k profit ($250k if you are unmarried) tax-free on the sale of your primary residence. This primary-home sale exclusion does not apply if you sell your second home: If you sell a house that is not your primary residence, you may have to pay the usual capital gains tax.
so, the rules for the capital gains tax exclusion on a second home sale are tricky. as said no since the total amt of the LTCG is still LESS than $500K.however, your parents still need to pay tax on the share of their LTCG ; since they sell their second home, their capital gains is the portion of the proceeds that exceeds what they paid for the property, plus the cost of any improvements they made over the years.and also as you are taking all of th e profits on the sale of the co owned home, in this case your parents, even if they give you a quitclaim deed , need to file form 709.