@jeanjrue wrote:
Thank you. So, it's still asking for accurate numbers for the purchase and sale. Should I keep them at that? Where does the 46% come in? To me, it looks like I'm claiming the full purchase and sale on my taxes and if my ex-spouse does the same, won't that be a flag for the IRS?
-28,688 seems to be wrong, my math comes out different.
There are a couple of ways you could do this.
You have a loss on the property, and losses on personal property are not deductible. So you could report the entire 1099-S as your sales proceeds, report the entire basis and adjustments, and show a loss of $10,200. It's not deductible or taxable, it just gets reported. Your ex could do exactly the same thing, and owe no tax and get no deduction. The IRS won't care (and probably won't even notice) that the full 1099-S was reported twice. (This is what I did after my ex sold our house, although instead of a loss I had a small gain that was covered by the exclusion.)
Or, don't enter the 1099-S at all in Turbotax. Report the sale of your home using selling price of $324,300, selling expenses of $20,441, and an adjusted cost basis of $308,551, for a loss of $4692. The IRS might send a letter asking why there was a 1099-S for $705,000 if you only reported $324,300. You would respond to that letter by telling the IRS that the home was sold in a divorce, you received a 46% share and reported 46% of the basis and the loss. Give them your ex's name and address and explain that they are responsible for the other 54%. You might also include copies of the relevant pages from your divorce (the cover page, signature page, and any internal pages where the house is discussed).
