Capitol gains with split between two individuals

Forum|Forum|4 months ago
February 25, 2026
1 reply
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I sold my home and the gains are split between my ex and I. I have a 1099s indicating the percentage that I received. I am not sure what information i need to enter so that it is all correct. I would also like to know if there are ways to offset the gains

Ask the Experts - MetLife - Feb 2026

DawnC

Level 15

You need to know your percentage, the basis and the sales price to report the sale in TurboTax - the 1099-S should have everything you need. As long as you owned and lived in the home for two of the five years before the sale, up to $250,000 of profit is tax-free.

Where do I enter Form 1099-S?

How does selling a home affect my taxes?

I sold my home. What can I deduct?

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Hjensen1Author

Level 2

Thank you. I do have all of that information. The part I am not sure about is adding adjustments to the basis. I assume both filing parties need to submit the same information? The gains exceed $250, 000 individually, so all adjustments will make a big difference. Closing costs should also be submitted correct?

RogerD1

Level 6

Did you each get half of the proceeds of the sale? If so, you can each claim half of all of all items related to the property such as the original purchase price, improvements made, expenses related to purchase and sale, etc. If you got unequal shares of the proceeds, you will need to apportion all of these items based on the percent of the proceeds each of you received.

The "basis" of your home gets subtracted from the sale price to give you the gain. The basis of the home will include the purchase price of the home, the expenses of the purchase (which you can get from the HUD-1 you would have received when you bought the home), and the cost of permanent improvements to the home.

From the sales price you will be able to subtract the sale expenses to get the net proceeds from the sale. Subtracting the home "basis" from this will give you the capital gain. And as DawnC mentioned previously, you will each be able to exclude up to $250,000 of gain provided each of you lived in the home for 2 out of the last 5 years.

IRS Publication 523 has more detailed information about the tax laws for a home sale.

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