If you want to split the 1099-S 50/50 between the two of you is fine. When a married couple sell their primary residence that they have lived in for at least two of the last five years, the IRS allows a capital gain exclusion for that sale. For a married couple filing separately, the exclusion is up to $250,000 for each spouse, and up to $500,000 for a married couple filing jointly. For more information on the capital gain exclusion see this Link:
To include the 1099-S that you should have received from the sale of your home follow these steps:
Please follow the steps below to include your 1099-S on your tax return:
• Go to Federal Taxes
• Select Wages & Income
• Click I'll choose what I work on
• Scroll down toward the bottom and find the "Less Common Income" section
• Select Start next to Sale of Home
• Go through this section and include your 1099-S information.
Yes that is common for joint property to receive the same 1099-S for the full transaction. Follow the steps outlined by SeanE1 above for each of you to report half of the sale on your respective returns.
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