When one spouse purchase half home ownership from another one. what are .tax implications?

curiousv · #1 (**permalink**) 02-11-2017, 02:05 AM

A legally separated couple jointly owns a house worth 120k. It was there agreement that one spouse can pay 60k and get the full ownership. But if they do so ....in this case what will be tax implications to each spouse...one is receiving money and other is getting full ownership of the house?

Houston Tax Attorney · #2 (**permalink**) 02-12-2017, 12:39 AM

What exactly does legally separated mean?

StuckInCleveland · #3 (**permalink**) 02-12-2017, 02:00 PM

Quote:

Originally Posted by curiousv

A legally separated couple jointly owns a house worth 120k. It was there agreement that one spouse can pay 60k and get the full ownership. But if they do so ....in this case what will be tax implications to each spouse...one is receiving money and other is getting full ownership of the house?

What was the purchase price? Did you live in it for 2 of the last 5 years? If so, a residency exclusion should apply to any capital gain. The only other issue is who can claim the interest on any mortgage on their taxes.