Title Transfer + Principle Residence Exemption?
Hi all,
I'm kind of lost on this, just wondering how to report this for tax purposes.
Both my sister and I were on title and live in our current house. She's moving out and buying a property of her own so we refinanced, I paid her her portion of the equity and had her removed off title.
Would this mean she'd have to report that she sold her principle residence? If so, she'd put 50% of the cost of what we purchased for and the proceeds would be the refinanced amount that I paid her?
This is going to look funny because it will look like there was a loss on the sale of the property on her end which isn't true and might raise red flags I'm assuming??
Also, anything else I should be doing on my end from a tax perspective? The whole transaction has already been done. Just figuring out the tax filing aspect.
I'm kind of lost on this, just wondering how to report this for tax purposes.
Both my sister and I were on title and live in our current house. She's moving out and buying a property of her own so we refinanced, I paid her her portion of the equity and had her removed off title.
Would this mean she'd have to report that she sold her principle residence? If so, she'd put 50% of the cost of what we purchased for and the proceeds would be the refinanced amount that I paid her?
This is going to look funny because it will look like there was a loss on the sale of the property on her end which isn't true and might raise red flags I'm assuming??
Also, anything else I should be doing on my end from a tax perspective? The whole transaction has already been done. Just figuring out the tax filing aspect.