1099-S and Divorce

Gilchrist — Wed, 29 Jan 2025 03:26:23 GMT

As part of my divorce, my former wife and I had to sell our house. First question - should the 1099-S we each receive show the full selling price for the house or should it show 50% for each of us?

If the answer to the first question is full selling price in Box 2 on the 1099-S, then is it permissible to only report 50% of that value on my taxes?

Re: 1099-S and Divorce

SabrinaD2 — Wed, 29 Jan 2025 04:10:26 GMT

When you and your former spouse sell a home the 1099-S you receive will typically show the full selling price of the property in Box 2. However, for tax filing purposes, you can report only your share of the sale.

Each of you can report 50% of the sale price, 50% of the cost basis, and 50% of the selling expenses on your individual tax returns. This ensures that only your portion of the gain or loss is accounted for.

IRS Resource Links
🔗 Form 1099-S Instructions - scroll down to section on Multiple Transferors and the subsection on Spouses
🔗 Publication 523, Selling Your Home

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1099-S and Divorce

Re: 1099-S and Divorce