turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

wakejunky
New Member

Divorce settlement included me voluntarily giving ex-wife my boat, so she could sale it and reimburse her legal fees. Can I get a tax benefit from this?

Apprised at $19K and she paid title transfer fee of $1.1K.  
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

1 Reply
rjs
Level 15
Level 15

Divorce settlement included me voluntarily giving ex-wife my boat, so she could sale it and reimburse her legal fees. Can I get a tax benefit from this?

There is no tax benefit for transferring ownership of your boat to your ex-wife as part of the divorce settlement.


Did you actually transfer ownership of the boat to your ex-wife, and then she, as the new owner, sold it? Or did you remain the owner and your ex-wife arranged a sale from you to the purchaser? You said that she paid a title transfer fee. Was that for transferring the title from you to her, or for transferring the title to the purchaser?


If you transferred title to the boat to your ex-wife as part of the divorce settlement, there is no tax effect for you at all. You do not report the transfer on your tax return. But if you still held title to the boat until it was sold, then you were the seller. If you sold it for more than you paid for it, you have to report the sale on your tax return and pay tax on the profit. (If you transferred title to your ex-wife and she was the seller, then she has to report the sale and pay tax on the profit, but that's not your concern.)


The appraised value of the boat is irrelevant. What matters is how much you paid for it and how much it was sold for.


(Just a comment: If you gave your boat to your ex-wife because the divorce settlement says you would, I wouldn't exactly call that voluntary. But as far as taxes are concerned, if it was part of the divorce settlement, it doesn't matter if it was voluntary or not.)

 

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
Manage cookies