Ok, so we are just about to sell our single family w/ legal accessory that we bought less than a year ago, and I'm researching how capital gains is going to work.
I have a cosigner on the loan who is in the highest tax bracket who I will be splitting the profit from the sale with. With this profit counted as just my income, I would still only be in the 15% tax bracket as I understand it.
Question: Do I need to have the cosigner sign he property over to me so I get the lower tax rate on capital gains? OR are we supposed to both take our individual splits of the $$ and then count the capital gains tax separately based on our own tax bracket?
I assume you're not in an LLC (which could be a different scenario), but the capital gains on the split would normally be based on your personal bracket. The HUD-1 should reflect the split.