2

My brother and sister-in-law were co-signors to a mortgage loan for their son. For one reason or another they were put down as co owners of the house. They never took any interest loan deductions or depreciation for the investment. It was a two family home. The house sold in 2019 and there was a capital gain. My brother's accountant told him he has a tax bill of $4000 due to the sale and profit of the house. Is he on the hook for the tax or does it all belong to his son?

fotoman
  • 63
  • 4
  • 1
    co-signing and co-borrowing are two very different things. It sounds like they weren't co-signers but that's something that you'd have to look at the original paperwork to untangle. I'd certainly tend to expect that someone's accountant is more likely to be right than some random people on the internet getting second and third-hand information about the situation. It would certainly make sense to talk to the accountant to see if they can amend prior year taxes. And hopefully the son would ensure that the co-borrowers received at least enough to pay their taxes on the sale. – Justin Cave Apr 07 '20 at 18:59
  • Did your brother/SIL receive any money from the sale of the house? – Joe Apr 07 '20 at 19:31
  • 2
    What is the jurisdiction? Tax questions need a jurisdiction. – Grade 'Eh' Bacon Apr 07 '20 at 20:03

0 Answers0