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My husband and i divorced and sold our home after taxes i got about $65000 its all gone now butwould that go in as money made this year

 
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VictoriaD75
Expert Alumni

My husband and i divorced and sold our home after taxes i got about $65000 its all gone now butwould that go in as money made this year

If the $65,000 is the gain related to the sale of your home only, it is likely that it is not taxable. A seller who owned and used a home as a principal residence for at least 2 of the last 5 years before the sale can exclude from income up to $250,000 or gain ($500,000 for joint filers). 

 

A seller otherwise qualified to exclude gain on a principal residence who fails to satisfy the 2-year ownership and use requirements may calculate the amount of excluded gain by prorating the exclusion amount if the residence sale is due to an employment-related move, health, or unforeseen circumstances, which can include divorce or separation.

 

Aside from the sale of the home, if the $65,000 is related to the settlement of other assets, a spouse who transfers property in settlement of a marital obligation is not required to recognize any gain as a result of the property's appreciation. Additionally, the transfer of property in settlement of a divorce is not considered alimony.

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1 Reply
VictoriaD75
Expert Alumni

My husband and i divorced and sold our home after taxes i got about $65000 its all gone now butwould that go in as money made this year

If the $65,000 is the gain related to the sale of your home only, it is likely that it is not taxable. A seller who owned and used a home as a principal residence for at least 2 of the last 5 years before the sale can exclude from income up to $250,000 or gain ($500,000 for joint filers). 

 

A seller otherwise qualified to exclude gain on a principal residence who fails to satisfy the 2-year ownership and use requirements may calculate the amount of excluded gain by prorating the exclusion amount if the residence sale is due to an employment-related move, health, or unforeseen circumstances, which can include divorce or separation.

 

Aside from the sale of the home, if the $65,000 is related to the settlement of other assets, a spouse who transfers property in settlement of a marital obligation is not required to recognize any gain as a result of the property's appreciation. Additionally, the transfer of property in settlement of a divorce is not considered alimony.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

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