We need to each be able to submit half of the gross proceeds, but only I received the form I think because the mortgage was under my name. The total proceeds is over 250K so I need to not be responsible for his share of the gains tax.
The IRS form 1099-S is reporting the sale of your personal home.
You and your ex-spouse should each report one half of the sale proceeds, selling expenses and deductible expenses. For instance, if the proceeds of sale was $300,000, you should each report $150,000. On your individual tax returns, you will each determine whether you qualify for the exclusion of gain on the sale of your personal home.
There is no way to add notes to an electronically filed Federal 1040 tax return. If you did, there is no one at the IRS who is reading the notes.
If you file electronically, make detailed notes of how the sale proceeds and expenses were divided and retain the notes with your tax papers. One or both of you may be contacted by the IRS at a later time.
If you file by mail, you are able to attach an written explanation to your tax return but the delay in processing time may be significant.
To report the sale of your personal home In TurboTax Online, enter 'sale of home' in the search bar in the upper right hand corner of the screen. Click on 'Jump to sale of home'.
See this TurboTax Help.
Each spouse receives an individual $250,000 exclusion from capital gains for sale of their personal home. Even if one spouse moved out due to a divorce, they still qualify for the exclusion as long as the other spouse used the home as their main residence. The gain is the difference between the selling price and the purchase price. If the gain is more than $500,000, you will be responsible for capital gains tax on your half.
As others have said, you probably qualify for the home sale capital gain exclusion.* For simplicity, just enter the 1099-S, as if you got it all. Enter at Less Common Income / Sale of Home. If it still bothers you to show the full gain, the workaround is to add his half of the gain to the cost basis.**
*You must have lived in the home for at least 2 years out of the 5 years prior to the sale. Even if you don't meet that, the divorce is an exception. Reply back for details, if that is your case.
**Technically the way to do it is show an adjustment and code in columns (f) and (g) of form 8949 for the "nominee" adjustment. But, TurboTax can't handle that.