HI Hlfalt89,
The rule is, the day your divorce decree states the official day, you are then SINGLE.
If you or the other Spouse did not live in the home in question for at least 6 months from the end of the year, and you are not officially divorced or separated, you are legally eligible to file as SINGLE on that year's tax return.
If the home was purchased as a family asset, the sale of the home would be reported on both parties personal tax return to assess how much the NET SELLING PRICE was greater or less than the ADJUST COST BASIS, including improvements.
Since NET LOSSES on the sale of the home are not tax deductible, you can exclude up to $500,000 of Long-Term Capital Gains if both parties lives in the home at least 2 of the last 5 years from the sale date.
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