answersLogoWhite

0


Best Answer

Assuming that it is the principal residence for BOTH you AND your brother, and that you both lived in the house for the same period of time...the same rules would apply to both of you. In order for gain to be excludible from income for Federal income tax purposes, it must have been your principal residence for at least 2 of the last 5 years. If it was your pirncipal residence for less than 2 years, none of the gain is excluded from tax. If it was your principal residence for more than 5 years, up to $250,000 (or $500,000, if you're married) is excludable from Federal income tax. If the house was your principal residence for between 2 and 5 years, the amount of gain excluded is pro-rated. Of course this assumes that you have gain. You likely know the answer to this already, but make sure that you know what your actual basis in the house is. Take into account improvements.

User Avatar

Wiki User

โˆ™ 2006-06-07 21:47:37
This answer is:
๐Ÿ™
0
๐Ÿคจ
0
๐Ÿ˜ฎ
0
User Avatar

Add your answer:

Earn +20 pts
Q: How is the gain taxed if you own a principle residence property jointly with your brother and sell it at a profit before and after two years?
Write your answer...
Submit
Related questions

What percentage of the proceeds is due to the wife when a property is sold?

If the property is owned jointly, the wife is entitled to 50% of the proceeds.If the property is owned jointly, the wife is entitled to 50% of the proceeds.If the property is owned jointly, the wife is entitled to 50% of the proceeds.If the property is owned jointly, the wife is entitled to 50% of the proceeds.


Can a lien be placed on jointly owned property in Alabama?

Whether or not it is possible depends upon how the deed to the property is worded. It also depends upon if the property is owned jointly by a married couple.


What is jointly owned holiday property called?

timeshare


How long do you to be married jointly owned property?

You do not necessarily have to be married to own jointly owned property and even when an individual is married for 60 years he could still keep property separate from his spouse. Property is considered jointly owned if you purchased it together (each contributing), your name is on the property, or in some situations when you are married and you have substantially contributed to the property. If your spouse has kept the property separate by keeping it in his name, only putting his money into it then it will be considered separate.


Can executor use monies from decedent's estate to pay property taxesinsurance on a residence jointly owned by some but not all of the heirs to the estate without prior consent of the heirs?

Assuming that the decedent's Will does not provide otherwise, and assuming that the decedent was liable for the taxes and insurance, or assuming that the residence is included in the decedent's estate, then yes.


Can you leave property to someone in a will if you don't own all the property?

If the property is owned jointly, you can leave your portion of the property or your portion of the ownership to someone.


Can I refinance a jointly owned home without the consent or signature of the other person who jointly owns the property and is also on the deed?

You can only encumber your own interest in the property. You cannot affect the co-tenant's interest in the property without their consent.


What if you destroy property during the marriage?

If it is marital property it is jointly owned and either party can do with it what they like. If it was separate property you are liable for the damages.


Can a wife sign on behalf of her husband in terms of owning a property jointly?

No.


Why would a spouse be considered a secondary owner of real estate property?

Either because they jointly participated in the purchase or jointly obtained a loan on the home, or because the home is located in a community property state.


Can you build an extra room on joint property without permission of the other owners?

No. You would need the written permission of all the other owners. The other owners may view your construction as damage to the property. You cannot take that liberty with jointly owned property.No. You would need the written permission of all the other owners. The other owners may view your construction as damage to the property. You cannot take that liberty with jointly owned property.No. You would need the written permission of all the other owners. The other owners may view your construction as damage to the property. You cannot take that liberty with jointly owned property.No. You would need the written permission of all the other owners. The other owners may view your construction as damage to the property. You cannot take that liberty with jointly owned property.


Is there an one-time exemption from paying capital gain when selling a home?

There is no one-time exemption. But there is an exemption you can take as often as every two years. If you owned the house for two of the last five years and the house was your principle residence for two of the five years, there is a $250,000 exemption. If you file jointly and the house was also your spouse's principle residence for two of the previous five years, there is a $500,000 exemption. If you move for reasons beyond your control without meeting the time requirements, you may qualify for a reduced exemption.


When a brother and sister own a house jointly is it possible to transfer my half to my partner?

Yes. You can convey your interest in the property to your partner. However, you should seek the advice of an attorney to discuss your options and the consequences as to the tenancy that will be created by a transfer.


Can a property lien be placed on jointly owned property in PA?

Yes, but it will only affect the half interest of the co-owner named in the judgment.


Why was Cleopatra queen?

Cleopatra was a queen because her father left the kingdom to her and her brother jointly. After the civil war with her brother, Julius Caesar made her the joint ruler with her remaining brother.


Are there any restrictions on leaving property by your will?

No. You can include any property you own at death in your will. That does not include jointly owned property which passes automatically to the surviving joint owner upon your death.


Can a judgment creditor foreclose on property jointly owned if only one person was named on the judgment?

No


Is the beneficiary of a will entitled to a share of the decedent's jointly-owned property?

It depends on what the will states. If the will states that you are the sole beneficiary of all of the decedent's property, you will receive whatever share the decedent owned of the jointly-owned property. The decedent's share of the property will become your share. If there are other beneficiaries and the division of ownership is not specified in the will, the decedent's share of the jointly-owned property will be divided equally amongst the beneficiaries. If the will states a specific division amongst beneficiaries (e.g. 1/2 interest to John Doe, 1/4 interest to Jane Doe and 1/4 interest to Bob Doe), then the decedent's share of the jointly owned property will be divided amongst the beneficiaries accordingly. But, the quick answer to your question is that just because someone else who is still alive has a share of the decedent's property doesn't mean that the entire property reverts to that alive shareholder. The decedent's interest in the property will go to his or her heirs in the same proportion that the decedent owned the property when he or she was alive.


Can someone put a lien on your home when it is a personal loan and what if the house is jointly owned and the owners are not married?

A Mechanic's lien can be placed on a jointly owned home without the necessity of a lawsuit. All other liens against real property even that which is jointly owned must be obtained through the prescribed legal procedure (lawsuit) of the state in which the property is located.


In Illinois can joint tenants who are also heirs intestate be required to sell the jointly owned property to pay the debts of the deceased?

Generally, jointly held property passes automatically to the surviving joint owner. It does not become a probate asset so it is not exposed to creditors. However, the situation changes if the creditor attached the property prior to the death of the debtor. Creditors can attach jointly held property while the debtor is living but if a creditor fails to attach prior to the death of the debtor then the property passes to the surviving joint tenant and the creditor is out of luck.


Can jointly owned property be willed to spouse with stipulations?

Property held in a joint tenancy automatically passes to the surviving owner. You cannot attach stipulations to it.


Can your brother be but on your joint account?

Yes. You can have anyone you want (Your friend, family member, siblings etc.) as a joint holder of the account. However, if the account is already jointly held by you and another individual and you want to add your brother to it, you need the approval/permission of all the other parties who jointly operate the account before you can add your brother to you.


Can a lender put a lien on real property that is jointly owned?

A creditor can record a judgment lien on property owned as joint tenants even if the lien is against only one pf the parties. However, on property held jointly by married couples as tenants by the entirety the lien would have to be against both parties.


If a husband dies first can a trust be left dictating what happens to property jointly owned?

If two people own property jointly the sole ownership automatically passes to the surviving joint owner upon the death of the other. Neither can change that operation of law by their will or by a trust. The surviving owner can devise the property in THEIR will or transfer it to a trust.


Is a beneficiary of a will entitled to a share of the decedent's jointly-owned property?

Generally, interest in jointly owned real and personal property passes automatically to the surviving owner. Joint bank accounts may pass into the estate if they were made joint only for the purpose of convenience.