turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Attend our Ask the Experts event about Deciphering Your Tax Forms on Feb 19! >> RSVP NOW!
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

How do i calculate the sale of a home when my wife and i divorced in 2023 and split the equity?

 
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

1 Reply
Vanessa A
Employee Tax Expert

How do i calculate the sale of a home when my wife and i divorced in 2023 and split the equity?

If you split the equity, then you would split the cost basis as well.  The cost basis would be split as well. The cost basis includes the price you paid for the house, improvements and such after you bought the house.  Also any expenses such as realtor fees.  

 

To enter the Sale of a Home select the following:

  1. Federal
  2. Income
  3. Sale of Home under Less Common Income

 If you owned and lived in the Home for 2 out of the last 5 years, then you may qualify for the home sale exclusion which would exclude up to $250k ($500k if married filing jointly) of the sale of your home.  In order to qualify you must not have used the home sale exclusion in the past 2 years. 

 

If you do not qualify, the rest of your income will play a part in the tax rate. This would be a capital gains sale so  your tax rate would be between 0% and 20%. The capital gains rates are as follows based on income

  • Zero percent rate for the following income
    • $44,625 for single or MFS
    • $59,750 for HOH
    • $89,250 for Married Filing Jointly
  • Fifteen percent for income more than above but less than below
    • $276,900 for MFS
    • $492,300 for Single
    • $523,050 for Head of Household
    • $553,850 for Married Filing Jointly
  • Twenty percent for the amount that your taxable income is over the 15% level. 
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question