Thank you very much. One clarification, the amount of money that was received and split in the divorce was the capital gain minus the asset basis (200K). So the 1099S says gross proceeds 650K, but what was actually split was more like 450K (225K each). because that's the gross proceeds minus the mortgage payoff which was approximately the same as the asset basis. Do I claim 425K in gain and the offset in asset basis, and then issue her the 1099 for just 225K, or are we supposed to split the asset basis even though technically she wasn't involved in the purchase?
