You can report 50% of the proceeds and 50% of the cost basis on your own return to report your share of the gain.
See the instructions to Form 1099-S under Multiple Transferors and spouses. At the time of the sale, you could have requested an uncontested allocation of the proceeds.
But
if you received one 1099-S that is only in your name,you may need to file a Nominee Form 1099-S for your ex-wife.
Nominee returns. Generally, if you receive a Form 1099 for amounts that actually belong to another person or entity, you are considered a nominee recipient. You must file a Form 1099 with the IRS (the same type of Form 1099 you received). You must also furnish a Form 1099 to each of the other owners. File the new Form 1099 with Form 1096 (this is a transmittal for the 1099) by mailing to the Internal Revenue Service Center for your area.
- On each new Form 1099, list yourself as the payer and the other owner, as the recipient. On Form 1096, list yourself as the nominee filer, not the original payer. The nominee is responsible for filing the subsequent Forms 1099 to show the amount allocable to each owner.
The forms filed with the IRS should be the red copy so if you don't have a color printer, go to the IRS website and order the forms here: Click here to order forms or publications from the IRS. This is to avoid having to explain this to the IRS.
If you don't do this, but each of you reports your share of the proceeds and the gains, the IRS will probably contact you, but you can respond that the sale was reported correctly.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
