Originally Posted by slimjim60
Everything was spelled out in divorce decree that I would receive proceeds from the sale of the home which I am reporting. My concern is that my former spouse would get a notice of non reporting or penalty given the 1099S has spouse ss# but both our names. It was sent to my new address. Do I need to alert spouse or IRS with how it will be reported?
SO IN YOUR divorce , the deed to the jointly owned house was
given to YOU, ALSO the decree did not require you to pay a certain amount to your
ex-spouse on sale of the house.since you sell the family home during or after a divorce, you/your ex probably won't have to pay capital gains tax.. In general, transfers of property between divorcing spouses are nontaxable.But there are circumstances where the capital gains tax—a tax on profits from sales of property where the gains exceed a certain amount—does apply to transfers that are made as part of your divorce.If you sell your principal house, you and your spouse can each exclude the first $250,000 of gain from your taxable income. you can contact the irs for sure.