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pmajor01
New Member

Do I need to claim the $12,000.00 from my ex-husband for my portion of the estimated equity in our home as noted in our separation agreement?

 
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Phillip1
New Member

Do I need to claim the $12,000.00 from my ex-husband for my portion of the estimated equity in our home as noted in our separation agreement?

No.

This would be a property settlement from your divorce. Property settlements from a divorce are not counted as taxable income. See the following from IRS Publication 504:

Transfer Between Spouses

Generally, no gain or loss is recognized on a transfer of property from you to (or in trust for the benefit of):

  • Your spouse, or

  • Your former spouse, but only if the transfer is incident to your divorce.

This rule applies even if the transfer was in exchange for cash, the release of marital rights, the assumption of liabilities, or other consideration.


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Phillip1
New Member

Do I need to claim the $12,000.00 from my ex-husband for my portion of the estimated equity in our home as noted in our separation agreement?

No.

This would be a property settlement from your divorce. Property settlements from a divorce are not counted as taxable income. See the following from IRS Publication 504:

Transfer Between Spouses

Generally, no gain or loss is recognized on a transfer of property from you to (or in trust for the benefit of):

  • Your spouse, or

  • Your former spouse, but only if the transfer is incident to your divorce.

This rule applies even if the transfer was in exchange for cash, the release of marital rights, the assumption of liabilities, or other consideration.


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