[homemc]

Me and my sister own the house ( two names on the deed ) , but it's only her name is on the mortgage. She moved out with her husband 2 years ago. Now I am planning to sell the house.( purchase price was $110,000, selling for $175,000) Who would have to pay a tax on capital gain and how ?

[JudyKayTee]

How did this come about? I'm not aware (in my area) of any bank that will allow one name on a mortgage but two names on the deed.

Who PAID the mortgage?

I think you'll end up in a battle with your sister over the money and the Court will percentage the profit between you.

You can't sell without your sister's signature (I'm confused that YOU are planning on selling the house when SHE is part owner).

[AtlantaTaxExpert]

There are some SIGNIFICANT information gaps in your post which need to be filled in before a concide answer is possible.

We need to know:

- Who paid for the house? If you both paid, what proportions/percentages?
- Has the house stood empty for two years, or was it rented? If rented, was it depreciated?
- WHEN was the house bought?
- Did YOU ever live in the house?

A more complete picture is needed.

[homemc]

We both want to sell the house , and share the profit . She doesn't want it and neither do I . We just not sure how we would pay a capital gain taxes.

[homemc]

There are some SIGNIFICANT information gaps in your post which need to be filled in before a concide answer is possible.

We need to know:

- Who paid for the house? If you both paid, what proportions/percentages?
- Has the house stood empty for two years, or was it rented? If rented, was it depreciated?
- WHEN was the house bought?
- Did YOU ever live in the house?

A more complete picture is needed.

For 8 years we lived in this house together, two years ago she got married and moved out, I stayed here with my wife and kids. We agreed upon selling the house share the profit half and half.
House was purchased in 2001

[homemc]

How did this come about? I'm not aware (in my area) of any bank that will allow one name on a mortgage but two names on the deed.

Who PAID the mortgage?

I think you'll end up in a battle with your sister over the money and the Court will percentage the profit between you.

You can't sell without your sister's signature (I'm confused that YOU are planning on selling the house when SHE is part owner).

We both want to sell the house , and share the profit . She doesn't want it and neither do I . We just not sure how we would pay a capital gain taxes, and how much. She is really concerned because she she and her husband make $180,000 a year, so she is afraid the tax on capital gain would be huge. I on the other hand make $60,000 for the family of 4, and don't want to pay capital gain tax.

[AtlantaTaxExpert]

You BOTH qualify for the exemption allowed for persons who sell the primary home. She lived in the house for three out of the past five years, and so did you.

Sell the house! You do not even have to report the sale to the IRS.