I am using Turbo Tax Premier Federal & State for 2022
Prior to filing for divorce, my then husband and I agreed on a property Division. Signed and notarized on . We agreed to file Married filing separately.
The agreement stated that a property we owned jointly be sold (not primary residence). All expenses owed on the property be deducted from the proceeds. Including reimbursing me for his half of expenditures for maintenance on the property. The property used to be a rental, but had been vacant for almost 3 years. The property was listed and sold. Settlement in 2022.
He received all remaining funds from the sale. Where do I enter this in the tax program? Do I treat it as a second home? Do I have to file anything or does he? Thank you
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It should definitely be entered on your tax return(s). You don't mention whether or not you are in a community property state where you would be required to split everything down the middle on your tax return anyway so I am going to assume that you don't.
From what you say here it sounds like the house was sold and all of the proceeds went to your ex-husband (except for the expense reimbursement that you received). In that case the property would need to be reported as a sale on your ex-husband's tax return. He will report the full sale price as well as all of the expenses and the profit on the sale of the property would be taxable to him. If I misunderstood and you split the proceeds then you would do this half and half on each return.
Being reimbursed for your expenses is not a taxable event. You don't need to report that.
Enter it in the program as sale of rental property. He will need to find the accumulated depreciation amount that was taken as of the time that you had stopped renting it. That amount should be on the last tax return that the property was a rental on. A portion of the proceeds from the sale will be taxed as depreciation recapture at his regular income tax rate.
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