I have a question about tax implication and how the capital gain will be assumed/calculated.
Here is the Scenario:
I am trying to take my name out of current mortgage for our house because I am buying another house where I will be living in. To qualify I have to take my name out of current mortgage and add my brother's name and it will have 2 other people with him on the mortgage (so basically we will be refinancing under my brother and 2 other people who are already on current mortgage). We plan to put the house on sale right after refinance is done. Now 2 other people will not have to pay capital gain because they are living in those for over 5 years. My brother on the other end will have to since he has not lived here.
When we calculate capital gain, how do we distribute among my brother and 2 other people (those 2 other people are husband and wife). Will we be able to do 1/3 capital gain for my brother? How do we calculate this? Any help appreciated.
Here is the Scenario:
I am trying to take my name out of current mortgage for our house because I am buying another house where I will be living in. To qualify I have to take my name out of current mortgage and add my brother's name and it will have 2 other people with him on the mortgage (so basically we will be refinancing under my brother and 2 other people who are already on current mortgage). We plan to put the house on sale right after refinance is done. Now 2 other people will not have to pay capital gain because they are living in those for over 5 years. My brother on the other end will have to since he has not lived here.
When we calculate capital gain, how do we distribute among my brother and 2 other people (those 2 other people are husband and wife). Will we be able to do 1/3 capital gain for my brother? How do we calculate this? Any help appreciated.