JamesG1
Employee Tax Expert

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Was this a sale of your personal residence or a second home, rental property or investment property?

 

Were you required to sell the property under the terms of a divorce decree?

 

IRS Publication 523 pages 2 and 3 states:

 

Generally, if you transferred your home (or share of a jointly owned home) to a spouse or ex-spouse as part of a divorce settlement, you are considered to have no gain or loss. You have nothing to report from the transfer and this entire publication doesn’t apply to you. However, there is one exception to this rule. If your spouse or ex-spouse is a nonresident alien, then you likely will have a gain or loss from the transfer and the tests in this publication apply.

 

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