Topic Thread

Residential exclusion

  • 1.  Residential exclusion

    Bronze Most Valuable Member
    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.

  • 2.  RE: Residential exclusion

    Silver Most Valuable Member
    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.

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