Q: If my husband, son (29 yrs old) and I bought a house 15 months ago in Bonita Springs. All three names are on the title
because we paid cash and our son contributed to the purchase. We did it this way because he couldn't qualify for a mortgage because he wasn't working. We have decided to sell the condo and have him move back home until he gets medical treatment for severe anxiety. If we sell and realize a $50,000 capital gain, who pays the capital gains tax? He has been unemployed the entire time. We contributed 85% of the sales price, while he contributed 15%. Thanks!
A:
It is a question for an accountant how to allocate your income from this house.
There may be ways to allocate the entire profit to your son who may have a lower income tax burden than you.
Or not claim it as income at all within the first two years of sale because you should be able to roll over that amount into another home within two years without paying tax on the gain (that's if at least one of you treated the home as primary residence).
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