Personal Finance

Advise needed - selling rental property capital gains

  • Last Updated:
  • Apr 12th, 2021 11:44 am
[OP]
Deal Addict
Nov 3, 2008
1710 posts
434 upvotes

Advise needed - selling rental property capital gains

Wonder if anyone can help. I'm having trouble on how to report capital gains on my tax form. See details below.

My (ex)wife and I separated last year and sold our rental property. We split the profit 50/50. We always had joint ownership and shared half of the profits/losses each year (as reported on each of our yearly taxes).

The property was sold for $400k, bought for $200k. I'll keep the math simple so i won't include legal fees, realtor ... etc.

Now on my tax forms do I claim the property sold for $200k and bought for $100k? For property gains of approx $25k. This seems like the simplest method for me as my ex would do the same and the full gains tax is paid. And we were always joint owners.

Or does one of us need to claim the full amount (sold and bought) and provide some tax form to the other person for 1/2 of the gains tax? This seems unnecessarily complicated.

I'm going to use StudioTax and she is going to her own software (turbotax?).

Any suggestion would be appreciated as I cannot find anything like this example on the net.
2 replies
Deal Addict
Feb 22, 2007
1982 posts
241 upvotes
Mississauga
i would report the full 400k and the full 200k on the tax form.
the tax form should ask you for your ownership - which you would enter 50% and it will all flow down from there

if that isn't an option, then both of you would report 200 and 100
[OP]
Deal Addict
Nov 3, 2008
1710 posts
434 upvotes
Thanks Pardnme.

There seems to be no where on the capital gains (schedule 3) form to enter total amount and my portion of it. I think I will just go with reporting 200K and 100K and my ex can do the same.

Just to note, when you are entering in rental income from a property there is a place to put your percentage of the income/loss and it gets divided accordingly.

Top