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?
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.
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.
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