What happens if only one member of a partnership lives in a house purchased jointly?
February 28, 2006
Date: Wed, 01 Feb 2006
If two siblings jointly buy a house through a partnership in which each is a 50% partner, and one sibling uses the house as a primary residence, can that sibling benefit from the primary residence exclusion when the house is sold?
Date: Mon, 06 Feb 2006
Owning the home as a partnership muddies the waters. I suggest the home should be owned as tenants in common (undivided interests). Then the resident owner should qualify for the exclusion.
(By the way, even though many families are buying homes this way, tax-wise it's very messy.)
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