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cmmay
Level 1

Selling Rental Property after Divorce and Reporting Capital Gains

After divorce in summer 2020, my former spouse and I maintained a rental property until October 2020 and then sold it in December 2020. For tax filing purposes now that the property is sold, can one of us claim the entirety of the rental proceeds, and the entirety of the capital gains on the sale of the property? I understand the average process would be to split the proceeds and capital gains between both parties 50/50. In this case, however, my former spouse was unemployed throughout 2020 and has no earned income to report. 

2 Replies
AmyC
Expert Alumni

Selling Rental Property after Divorce and Reporting Capital Gains

The tax and income goes to the owner. The divorce papers may say who owns the property. If you agreed to maintain it as joint property, then you would split everything in half. Your wife would report the sales proceeds regardless of her income.

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cmmay
Level 1

Selling Rental Property after Divorce and Reporting Capital Gains

Thank you!

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