Deductions & credits

In general, assuming you are 50/50 owners, each of you would report half (half the cost basis, half the selling price, and half the gain).

 

If your divorce agreement says something different (like, "spouse A assumes full ownership of the second home and is responsible for all expenses and taxes") then follow your divorce decree.  

 

A second home usually does not qualify for the capital gains exclusion, although that depends on the exact circumstances. 

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