Taxes: When is it considered sold

[Ron K.]

I think I have seen this discussed but I can't find the thread. My question: For determining capital gains, when is a house considered sold. When the contract is signed or when closed?

[Bill Walston]

Originally posted by Bryan A.:

hey steven, sorry for the hijack guys...what if you and a partner split up, and have owned the property for 11 months? when you split and dissolve the partnership, and deed a property into a new entity that only you own, and you go to sell in let's say 3 months..well you've owned it total for 14 months, but only 3 months under this new entity without your partner...would that qualify for long term or short term capital gains treatment?

Bryan, make sure you talk with your tax pro before the split...the dissolution of the partnership with one partner getting the property may, in and of itself, create a taxable event.