Avoiding Capitol Gains Tax

[Michael Fucillo]

Hello!

I’m hoping someone here has been in a similar situation and can offer some advice. This is regarding my primary residence (in NJ).

The home I live in now was purchased about 6 years ago with a HELOC on my father-in-laws house. The loan and the deed are in his name. He gifted us $25k towards the initial down payment, but we have paid for everything else (rest of down payment, payments on the loan, taxes, improvements, etc)

We are now selling the house and expect a profit. It is my understanding that because this is technically my father-in-laws second home, the sale is subject to long term capitol gains. Also, because everything is in his name, now the money is his and I’m not sure how to get it to us.

Looking for any advice you can offer!

Her are the financial details

Thanks in advance!