Q: I am receiving money from the sale of a house where my name was added to the deed. Will I owe taxes on that money?
Lawyers, want to be a Justia Connect Pro too? Learn more ›
- (916) 704-3009
- View Profile
- Answered
A:
When you receive money from the sale of a house where your name was added to the deed, whether you owe taxes depends on several factors. The key considerations include your ownership duration, the house's use, and any capital gains exclusions available.
If the house was your primary residence for at least two out of the last five years, you might qualify for the home sale exclusion. This means you could exclude up to $250,000 of the gain from your taxable income if you are single, or $500,000 if you are married and file jointly.
However, if the house wasn't your primary residence or you don't meet the ownership and use tests, you may owe capital gains tax on the profit from the sale. The tax rate depends on how long you owned the property and your income level. Consulting the IRS guidelines or a tax professional can provide specific advice for your situation.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
