m2m
Initiate Member
Joined: Dec 19, 2011 0:17:52 GMT -5
Posts: 81
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Post by m2m on Jul 30, 2014 17:48:26 GMT -5
2 names on stock certificate of co-op apartment are joint owners with rights of survivorship.
*Owner no. 1 purchased the apartment, pays all real estate taxes & maintenance expenses, but does not live there.
*Owner no. 2 has always lived there. Her name was added only so that she can live there. (Only owners specified on stock certificate are allowed by the co-op board to live there.)
Tax issues when apartment is sold? Proceeds belong to whom? Who pays capital gains? Does capital gains 121 exclusion apply?
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mwcpa
Senior Member
Joined: Jan 7, 2011 6:35:43 GMT -5
Posts: 2,425
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Post by mwcpa on Jul 31, 2014 5:18:37 GMT -5
m2m... you have a mess....
1. possible gift tax issue for adding owner 2 when owner 1 added him/her to the title 2. owner 1 cannot benefit from "121" 3. owner 2 may benefit from "121" |
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m2m
Initiate Member
Joined: Dec 19, 2011 0:17:52 GMT -5
Posts: 81
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Post by m2m on Jul 31, 2014 10:01:34 GMT -5
Thank you MW!
Yes - it is a mess. Was just trying to help out. Just stumbled into tax issues now - totally ignorant about them at the time; nothing mentioned by real estate lawyer. No gift tax paid or reported. Does it at least help that the purchase price was well below the lifetime gift tax exemption at the time and the annual fees, expenses have been below the annual gift tax exemption?
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