In 2018 I sold my house and gave $174,000 to my ex wife. Not as apart of the divorce. I gifted it to her. Can I take one in a lifetime exception and not pay taxes?

[ppetrov55]

I sold my house in 2018. I gifted the earnings to my ex wife. $174,000. It is my understanding that I have to file a form 709. I don't understand how the Once In a Lifetime Exception works. May I file a "once in a lifetime exception"?  May I use it to avoid having to pay taxes on the gift because it seems I have to pay 30% taxes, which I don't have. Thank you. 

[xmasbaby0]

Money that you receive as a gift is not taxable income to you, and you do not need to report it on your income tax return.  Money that you gave as a gift to someone else is not deductible for your taxes.

Turbo Tax does not support the gift tax form 709, but here is a link:

https://www.irs.gov/pub/irs-pdf/f709.pdf

https://turbotax.intuit.com/tax-tips/estates/the-gift-tax-made-simple/L5tGWVC8N

https://www.forbes.com/sites/ashleaebeling/2017/10/19/irs-announces-2018-estate-and-gift-tax-limits-...

[Hal_Al]

"Gift Tax" is somewhat of a misnomer.  Even though a gift tax return may be required, very few people ever actually pay federal gift tax. The purpose of the gift tax return is usually only to document a reduction in the allowable estate tax exemption.
See https://turbotax.intuit.com/tax-tools/tax-tips/Tax-Planning-and-Checklists/The-Gift-Tax-Made-Simple/...