I sold my primary home last year and am trying to ensure that I have the right cost basis. I can handle the normal stuff but hope someone has ideas for the following sequence :
1) Home was purchased by two single people
2) After 15 years, we split up. We refinanced the house and used the equity to purchase a condo. Both continued to pay the primary mortgage.
3) 5 years later we determined that the equity in the house and condo were about equal so we did “Quit claims”. I took the house and mortgage and he took the condo.
4) 10 years later I sold the house.
So, is my cost basis 1/2 of what we originally paid? The total we originally paid? The sum of 1/2 the cost of the house plus 1/2 the value of the condo? Or, something else?
I want to do what’s right, but I’d like to reduce the capital gains if possible.
Thanks for any ideas – I feel like I have a bit of a mess on my hands.