I sold a home and split the gain with my ex-husband as part of our divorce agreement. How do I report only half of the gain in the Sale of Home category?

[SharonD007]

You both may be able to exclude a portion of your proceeds from the sale of your home if you meet the requirements. The three tests that you must meet are:

1. Ownership - You must have owned your home for at least two of the five years before you sell your home
2. Use - You must have used your home as a personal residence for at least two of the five years prior to the date that you sold your home
3. Timing - You can't exclude the gain of another principal residence that you sold within two years of the current sale.

If you meet these requirements,  you don't have to pay taxes on the first $250,000 (500,000 if you are married and file a joint tax return). If your profit is more than $250,000 ($500,000 if MFJ) then, the excess is reported on Schedule D as a capital gain.

Both of you will report half of the proceeds from the sale and expenses incurred. Refer to the TurboTax Help article, Where do I enter Form 1099-S? for instructions to enter your home sale.

For additional information, refer to the TurboTax article Tax Aspects of Home Ownership: Selling a Home and the IRS article Topic no. 701, Sale of your home.