Divorce in 2020 caused sale of a triplex that we owned jointly but the divorce settlement states that I get 65% of funds. How do I report that

[marilyn430]

Divorce in 2020 caused sale of a triplex that we owned jointly but the divorce settlement states that I get 65% of funds. How do I report that?

[Bsch4477]

You don’t. Such exchanges pursuant to a divorce settlement are not taxable events. 

@VolvoGirl I might have overreached. I just noticed that the property was a triplex.  If that is  a rental property. the gain would be split and the poster would report 65% of any gain. 

[VolvoGirl]

But they still have To report the sale don't they?  Probably half each?  @Bsch4477 

[GeorgeDenseff]

As part of the closing package you could ask the seller to issue two 1099-S.  One for you for 65% and one for your wife for 35%. 

If you are only issued one 1099-S, you will enter that and then a 1099-S negative entry for 35%.  Your spouse can enter the same 1099-S and enter a 1099-S with 65% as a negative entry.

That way you will each report the income from the sale and only be taxed on the share that is received from the sale.