Disposition of Home My wife and I are separated. We are getting an uncontested divorce. All of our assets split nicely except for our real estate assets. All will occur in 2014.
We own our main home free and clear, and we own a rental home with a 180K mortgage. FMV for the main home is 420K, and the rental FMV is 220K. We purchased the main home in 2001 for $305K, and we pruchased the rental home in 2008 for 300K. I will be keeping the rental home, and she will be keeping the main home. Her brother will be buying a partial stake in the main home for 190K, and that money will go to me. I believe that I will not have to pay income tax on the 190K I receive. Can you confirm this and advise the best way to execute this transaction? |