Q: My parents are cosigners on my house do they have to pay capital gains taxes when I sell it?
A: As co-signers, I assume your parents are not co-owners. When a capital asset is sold, only the owner pays tax. They are simply relieved of their contingent obligation to pay your debt if you default and that does not give rise to capital income on which a tax is due.
A: Generally, co-singers are only liable for the payment, if necessary, not interest owners of the underlying property. Therefore, absent any evidence to the contrary, they should not be entitled to the capital gains or the corresponding tax. Good luck.
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