Can Gain from Jointly Owned Property Be Designated to One Owner?
My wife and I are looking to purchase a SFH to rehab and flip. We want the gains from the sale to go to me for tax purposes. We originally had the idea of me buying the property and having the deed solely in my name, with her using her underwriting-friendly financials as a cosigner/co-borrower. From what I've been told, any co-borrower has to be on the deed as well, so that wouldn't work.
If a jointly owned property sells with a gain, is there a way to designate that gain to a specific owner? Or, does the IRS treat it as an automatic 50-50 split? We'd like to stay away from doing this through an LLC in case we decide to rehab the house and stay there for a few years (to take advantage of the exclusion).
Any ideas?