First, yes your exclusion is 61.7% of 250K, or $154,250.
Q 1. No, the whole $110K would be excluded from income. So there would be no tax.
Q 2. Yes, because of the divorce you can take a reduced exclusion within two years of the first exclusion.
Q 3. Agreeing to pay taxes on the first one makes no sense. The exclusion is the same whether you take the first one or not, because of the divorce. Exclude them both.
Q 4. All of those are closing costs except the tax payment - the tax payment was deductible in the year that you paid it as part of your itemized deductions.
Q 5. As I said in question 4, taxes do not count. Not sure what that municipal fee is, so maybe on that one. The only other one on that list that counts is title related fees.
Q 6. Yes, use your final settlement statement to get the amounts to enter. Also, keep an eye out for a form 1099-S. The amount on that form should match the gross proceeds on the final settlement statement. That number definitely needs to appear on your tax return before being adjusted by closing costs and exclusions.
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