Capital Gains

[Richtex]

My wife and I bought a condo in 2013 so our children could live there while attending college.  They lived there rent free. The youngest left the condo in 2021 and we subsequently sold the condo in 2021. 

Question1 -  Do we have to pay long term capital gains or does it qualify under the $250,000 home exemption since it was not used as a rental?

Question 2 - My wife and I divorced in 2017 so the proceeds were split between us in 2021.  If we have to pay our share of the capital gains, then how is that split on the various IRS forms for tax year 2021?

[MinhT1]

1. Your condominium is an investment home and not your residence. Therefore, you cannot use the $250,000 capital gain exclusion. Your capital gains are taxable as long-term.

2. If you and your ex-spouse each own 50% of the condo after your divorce, then each of you must report the sale of your 50% share of the condominium. all numbers (cost basis, selling price, selling expenses) have to be halved for each of you to report on your respective returns.

[Richtex]

Which version of Turbo Tax do I use?  

[DoninGA]

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@Richtex wrote:

Which version of Turbo Tax do I use?  

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If you are going to use the TurboTax online editions then you will have to use the Premier edition to report the sale - https://turbotax.intuit.com/personal-taxes/online/

If you are going to use the TurboTax desktop CD/Download editions then any edition can be used but the Premier edition is recommended for this situation - https://turbotax.intuit.com/personal-taxes/cd-download/