I am recently divorced and will be filing single this year. Do I have to report what I received on the sell of our house? Who claims the interest paid on the house, me or him?
Thank you,
BIbi8530
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Talk to your attorney----was there anything in the divorce agreement pertaining to the sale of the house?
Who owns the house? If you sell a house you own, you must report and pay capital gains tax. However, if this is your personal home where you live, you may be able to exclude the first $250,000 of capital gains from taxation. See IRS pub 523.
https://www.irs.gov/forms-pubs/about-publication-523
Publication 523 also discusses a sale after divorce. If you currently co-own the house, then normally each of you will report half the sale, and pay tax if your half the gain is more than $250,000. You would report half the purchase price, and half the selling price, and calculate your half of the gain.
In the mean time, if you both still co-own the house, the person who can deduct the mortgage interest and property taxes on schedule A is the person who actually pays the interest and taxes.
If you don't co-own the house, because full ownership was already transferred to one spouse during the divorce, it might get a little more complicated, depending on how much gain you expect.
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