Father co-signed on property with son on undeveloped property 3 years ago. Property was sold this year. Property was purchased for 45000 and sold for 132000. Father received a 1099s for 66000 representing his portion of the gain. How do I record this?
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Schedule D/8949.
$66,000 is his portion of the sale price. not gain.
Thank you!
Another question regarding this sale. How do I handle the cost basis? Father only co-signed on the account and no money put down, yet attorney said he was entitled to and received half of the proceeds because he was on the title. Original cost was 45000.
He didn't just co-sign. He co-owned. Which was no doubt required by the lender. He could have deeded his interest to the son at any time after the deal closed (maybe the lender would have to be notified, but if they were getting their payments they probably would not have foreclosed). If it had been a loss, would he be turning down the deduction?
Ok, understood. So, original cost is divided between both parties as well?
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