Q: I want to determine the tax liabilities on the sale of a second home.
The home was originally purchased 19 years ago with my father. Six years ago the ownership was transferred from my father and myself to my wife and myself as a deed of gift. I remained the common owner in both parties. The home was/is not my primary residence in both ownership scenarios. My wife and I sold the home this year and I am trying to determine the capital gains taxes. Because I am the common owner from original purchase through deed transfer to recent sale, may I consider the original purchase price from 19 years ago as the cost basis for capital gains tax calculations? Does the deed transfer that removed my father and added my wife change how the taxes will be determined? My wife and I file jointly.
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