1099R divorce

Forum|Forum|6 years ago
February 15, 2020
2 replies
55 views

I received a 1099R due to withdrawing my Roth IRA (I am not 59 1/2) I paid taxes at the bank. I needed to withdrawal the money because the account was transferring to the other party. One of the questions that are asked is did you buy your first home, I bought a home and the first one I have bought on my own. Is that the deciding factor of this question or is it the very first home you have owned joint or individually?

Also, I sold a home, I didn't get the tax paperwork, I believe it fell into the threshold that we didn't make capital gains where we pay taxes, does this need to be listed if I didn't get the capital gains tax paperwork?

Best answer by Bsch4477

This is how the IRS defines a first time home buyer.

First-time homebuyer. Generally, you are a first-time homebuyer if you had no present interest in a main home during the 2-year period ending on the date of acquisition of the home which the distribution is being used to buy, build, or rebuild. If you are married, your spouse also must meet this no-ownership requirement.

If you did not get a. Form 1099-S you don’t have to report the home sale.

Bsch4477

Answer

Level 15

This is how the IRS defines a first time home buyer.

If you did not get a. Form 1099-S you don’t have to report the home sale.

KathrynG3

Level 14

The deciding factor of the question to qualify as a first-time home purchase comes down to the timing:

IRS Publication 590-B states beginning on page 25:
First-time homebuyer. Generally, you are a first-time homebuyer if you had no present interest in a main home during the 2-year period ending on the date of acquisition of the home which the distribution is being used to buy, build, or rebuild. If you are married, your spouse also must meet this no-ownership requirement.

Secondly, regarding selling the former residence, a $250,000 exemption is applicable for your half of the home if you lived in the home for two out of the last five years.

To learn more, see the IRS references

Publication 523 Selling Your Home

Publication 504 Divorced or Separated Individuals