40/60 Condominium //free\\ 〈Works 100%〉

By J. Hartwell

But if the profit is $600,000? The 60% owner’s share is $360,000. They pay capital gains on $110,000 ($360k minus $250k exclusion). The 40% owner’s share is $240,000, which is fully excluded. The 60% owner writes a check to the IRS. The 40% owner does not. Cue the argument. After all the legal scaffolding, the 40/60 condo succeeds or fails on a single question: 40/60 condominium

Example: You sell the condo for a $300,000 profit. The 60% owner’s share of the gain is $180,000. They exclude it entirely. The 40% owner’s share is $120,000. They also exclude it. Everyone’s happy. 40/60 condominium