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Old 02-24-2014, 09:58 PM
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capital gains/divorce

Wife and I purchased a second in April 2012 for 140K. Sold it in Jan 2013 for 165K. Had 10K in improvements. We divorced in june 2013. How do we report the gain. Split it on our individual returns? Did not receive a 1099S from the title company?



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Old 02-26-2014, 01:11 AM
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Originally Posted by yellowjacket8 View Post


#1;Wife and I purchased a second in April 2012 for 140K. Sold it in Jan 2013 for 165K. Had 10K in improvements. We divorced in june 2013. How do we report the gain. Split it on our individual returns?


#2;Did not receive a 1099S from the title company?
#1;it depends on divorce decree; An attorney can provide divorce advice on how to determine the gain on the sale of the home.thestcg of $15k aslongas you find that you have a taxable gain and you and your spouse are equally responsible for any taxes due, the divorce advice provided by your attorney will likely recommend that you insert a clause in your divorce agreement that states: The parties agree that the real estate shall be sold as soon as possible and the net proceeds (after all expenses directly related to the sales of the property have been deducted) will be divided equally between both parties

#2; Form 1099-S is not required to be provided in the event an individual sold his main residence and has a gain on the sale of $250,000 or less; $500,000 or less in the case of married individuals filing a joint tax return. This exclusion of the gain is permitted under IRS Code Section 121.however, When you sold the 2nd home , you’d receive 1099S which reports the gross proceeds rather than net. Where this information is reported depends on the use of the property - main home, timeshare/vacation home, investment property, business use, or rental use.



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