Basis on sale of house owned by 2 people

MMLEE
MMLEE Member Posts: 1 Newcomer
in Live Q/A Event

The deed for the property I owned with a partner shows that I had 60% interest in the property. It was a cash purchase, and I paid over 90% of the total payment. When I file my return for the sale, can I use the actual amount I paid as my basis or is it based on our ownership percentage? We have records of how much each of us paid at time of purchase.

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Answers

  • LeahB
    LeahB FreeTaxUSA Agent Posts: 10
    edited December 10

    Thank you for the question, MMLEE! This can feel like a tricky situation. The IRS outlines the basis of an asset generally as the asset's cost to you. The cost is the amount you pay in cash, debt obligations (loans), and other options.
    Reference page 2 "Cost Basis": IRS Publication 551 Basis of Assets

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