Legal Question in Tax Law in Massachusetts

capital gains on secondary home

My fiance and I are splitting up and we are joint owners of an out of state property. Can the capital gain taxes be split? I'm claiming the property on my taxes according to the bank. Does that matter? Do I also have to pay state taxes on capital gains? How much % for Federal?


Asked on 8/08/07, 9:50 pm

1 Answer from Attorneys

Re: capital gains on secondary home

The issue is who is getting the proceeds from the sale. If you are splitting the proceeds as part of a contractual understanding, you can deduct from your gain that amount you are obligated to pay him and issue him a 1099.

Capital gains tax should be about the same for both of you, unless one of you has a very low income in relation to the other. I would take my last years tax returns to a local CPA and indicate your current earnings and his, he would be in the best position to advise you after reviewing your tax returns and current income.

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Answered on 8/09/07, 9:16 am


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