My father purchased the house and after 05 years added me on the title as well. Since then I have bought my own home as well which I plan to sell this year. My father also wants to sell the house. Now the problem is that we both want to claim the principal residence exemption. Can you help us with this?
The problem is that both of you are on the title of the home that is in your father name but each of you want to claim principal residence separately. This can be achieved by setting up a bare trust. The bare trust will say that you own the 50% of the house holding a 50% interest in trust for your father. In this way your father can claim the full 100% principal residence exemption and so can you for your own home. Hope, this helps.