Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
mschwartz1978
New Member

Son's divorce in process. Sold primary home. I bought replacement home with intent to sell to him once divorce is final. Don't plan deductions. Tax implications?

 
5 Replies
xmasbaby0
Level 15

Son's divorce in process. Sold primary home. I bought replacement home with intent to sell to him once divorce is final. Don't plan deductions. Tax implications?

Please try posting your situation in complete sentences with details.  There is plenty of room for you to do that instead of trying to put a complicated situation in shorthand for us to interpret.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
mschwartz1978
New Member

Son's divorce in process. Sold primary home. I bought replacement home with intent to sell to him once divorce is final. Don't plan deductions. Tax implications?

I was limited to 170 characters by the software. While in the process of getting a divorce, my son sold his house that was jointly owned with his wife. He wanted to buy a house for himself, but his wife wouldn't sign the papers even though there was a document saying she had no liability. That being the case, I purchased the home with the intent of selling it back to him at my purchase price once the divorce is finalized. He is paying me monthly to offset the home equity loan that I used. I don't plan to try to take any deductions. Are ther any tax implications that I need to be aware of?

Critter-3
Level 15

Son's divorce in process. Sold primary home. I bought replacement home with intent to sell to him once divorce is final. Don't plan deductions. Tax implications?

Are there any tax implications that I need to be aware of?   NONE.

VolvoGirl
Level 15

Son's divorce in process. Sold primary home. I bought replacement home with intent to sell to him once divorce is final. Don't plan deductions. Tax implications?

The 170 character limit is only for the subject/title box for a brief description of your question.  There was a bigger box below for the full question and details.

DanielV01
Expert Alumni

Son's divorce in process. Sold primary home. I bought replacement home with intent to sell to him once divorce is final. Don't plan deductions. Tax implications?

@mschwartz1978  Although @CRitter3 is correct that there is no reason you will have any tax liability, you could have a reporting requirement, since you are selling the home.  If you receive a Form 1099-S, for example, the sale is reported to the IRS.  You would need to report the sale in that case so that the IRS does not treat the entire proceeds as taxable income.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
Dynamic AdsDynamic Ads
Privacy Settings
v