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Sold house from divorce, profit divided, so how do I claim it on my separate tax return?

 
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DS30
New Member

Sold house from divorce, profit divided, so how do I claim it on my separate tax return?

It depends but if you have to report the sale, you will report your share of the house (50/50 if you live in a Community Property State) as the sale of a capital asset. So you will include your share of the cost basis and your share of the net profits from the sale on your tax return (if this is not your primary home or you do not meet the home gain exclusions).

You do not need to enter or report the sale of your primary residence if:

  • You never used your primary residence as a rental or took home office deduction
  • You have a loss on the sale of your home (Personal capital losses are not reported on your tax return)
  • You did not receive a Form 1099-S and
  • You meet the home gain exclusion (see below)

You can take the gain exclusion as long as you considered the home your "primary residence" for 2 of the last 5 years. If you have a capital gain from the sale of your main home, you may qualify to exclude up to $250,000 of that gain from your income. You may qualify to exclude up to $500,000 of that gain if you file a joint return with your spouse. See  Sale of Your Home for more information on the exclusion.

If you still need to enter your sale of your primary residence (which may require an upgrade in TurboTax), please follow these steps:  log into your tax return (for TurboTax Online sign-in, click Here and click on "Take me to my return") type "sale of home" in the search bar then select "jump to sale of home". TurboTax will guide you in entering this information

If this is the sale of a second home -

To enter the sale of a capital asset in TurboTax, log into your tax return (for TurboTax Online sign-in, click Here and click on "Take me to my return") type "investment sales" in the search bar then select "jump to investment sales". TurboTax will guide you in entering this information.

  1. Choose “Stocks, Mutual Funds, Bonds, Other” and select “start’ (or “update” is you have already worked on this section)
  2. The first screen will ask if you sold any investments during the current tax year (This includes any sale of real property held as an investment property so answer “yes” to this question)
  3. Since you did not receive a 1099-B, answer “no” to the 1099-B question
  4. Choose type of investment you sold - select Second Home
  5. Some basic information:
    1. Description –  Usually the address of the property sold
    2. Sales Proceeds – Net proceeds from the sale  (your proportional share)
    3. Date Sold – Date you sold the property
  6. Tell us how you acquired the property - purchased
  7. Any business or rental use? - select personal use only (please note that capital losses are not allowed on personal use property) If you make another selection, you may need to report this sale under sale of business
  8. Some Basis information
    1. Date Acquired
    2. Original cost basis (your proportional share)
    3. Cost of improvements

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