Home sale after divorce. 70/30 Split

[Peepsnj]

We sold our house in 2021. The divorce settlement gives my ex 70% of the proceeds and I got 30%. How do I report the sale in TurboTax? The 1099-S I received shows the gross amount due me but it does not reflect what I actually received. Do I deduct 30% of the closing costs? Also in reporting the original purchase price of the house and any improvements do I report 30% of those items as well?

[MayaD]

Yes. You would deduct %30 of the expenses. You cost basis is %30 of the purchase price plus %30 of improvements.

Sales expenses are listed in the sellers column of your settlement statement and include:
 - commissions
 - appraisal fees
 - broker's fees
 - legal fees
 - advertising fees
 - home inspection reports
 - title insurance
 - transfer taxes or fees
 - geological surveys
 - loan charges (points) or other fees paid on the buyer's behalf
 - any fees for a service that helped you sell your home without a broker (listing fees, promotional fliers, etc.) 

NOTE:
Sales expenses do not include:
 - mortgage payoffs
 - home equity loan payoffs
 - rent-back costs
 - payoff to creditors
 - property taxes
 - home owner association fees

To report the sale :

Scroll down to Less Common Income.

Click Start next to Sale of Home.

• Login to your account.
• Select Federal from the left menu
• Go to Wages and Income then Income and Expenses.

[Peepsnj]

Do I need to report the other 70%  so that the IRS sees the whole sale? If so, how do I do that in TurboTax?

[Vanessa A]

No, you will only report the 30% that you received.  Your ex will report the 70% on their return.