Topic Thread

Residential exclusion

  • 1.  Residential exclusion

    Posted 08-08-2018 08:30
    Hi All
    Taxpayer owned a property jointly with her mother.
    Taxpayer clearly meets ownership and occupancy.
    Mother only met ownership not occupancy-
    Although mother contributed towards purchase, full sales proceeds went to daughter.
    I know there is gift tax.
    I am assuming gain needs to be allocated, as opposed to daughter declaring entire gain-
    Any insight appreciated.
    Gary


  • 2.  RE: Residential exclusion

    Posted 08-09-2018 09:26
    ​I would explore the underlying reasons for Mom's ownership.  Perhaps it was to secure her investment if daughter died or to avoid probate.

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    Robert Barnett
    CPA, ESQ.
    Capell Barnett Matalon & Schoenfeld LLP
    JERICHO NY
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