How to split capital gains with spouse...

[Kilgore]

My wife and I sold our cottage which had us both on the deed for the property. I'd like to split the capital gains between us 50/50 for tax purposes. There does not seem to be a way to do this on Schedule 3. Is there anyway to do this ?

[thakar88]

Thank you for choosing TurboTax.

To report and split your capital gain follow the below steps.

•  At the top of the page, you will see the "find" button click it and find "Capital Gain and Capital Gain Deduction profile".
•  You need to select the first options and continue.
•  In the first line, you will select "Real estate/depreciable/other".
•  Enter a spousal percentage in the second line.
•  In the 3rd, 4th and 5th lines leave blank in your case.
• In the 6th line enter a year when you purchased a cottage.
•  In the 7th line enter a day and month of the year 2020 when you dispose of the cottage.
•  In the 8th line enter the selling price of a cottage.
• In the 9th line enter the purchase price of a cottage.
• In the 10th line enter other expenses like legal fees, depreciation, legal fees.
• The Last line leaves blank and clicks to continue. On the next page, you will see a capital gain or loss.

 Before you apply the above steps kindly read the article Can I Split My Capital Gain With My Spouse? 

[yli11]

Hello, 

In TTO, if a couple wants to split capital gain form the sale of a rental property, the software does not split the total capital gain automatically, so the client has to manually split the total amount and enter twice, one for the husband and one for the partner. 

Thank you, 

Linda

[TurboTaxGinette]

For step by step directions, please see our TurboTax FAQs: 

How do I report the sale of my home (principal residence)? 

How do I split capital gains between spousal returns?

Thank you for choosing TurboTax.