sold house

[hummingangel]

I sold my house to my ex husband this August. Does that money have to be claimed as income? since he is my ex does that change anything? 

[Bsch4477]

If the transaction is made as part of the marital divorce agreement there are no tax implications. 

[JamesG1]

Was this a sale of your personal residence or a second home, rental property or investment property?

Were you required to sell the property under the terms of a divorce decree?

IRS Publication 523 pages 2 and 3 states:

Generally, if you transferred your home (or share of a jointly owned home) to a spouse or ex-spouse as part of a divorce settlement, you are considered to have no gain or loss. You have nothing to report from the transfer and this entire publication doesn’t apply to you. However, there is one exception to this rule. If your spouse or ex-spouse is a nonresident alien, then you likely will have a gain or loss from the transfer and the tests in this publication apply.

[hummingangel]

it was a rental property. and no it was under terms of divorce...we are still going through the divorce process so still considered married. It was my house before I married him and we turned it into a rental and since he took care of all the landlord issues I sold him the house after we seperated. 

[DianeW777]

I.R.C. Section 1041 provides that no gain or loss is recognized on a transfer of property from a spouse or a former spouse to a spouse or former spouse if the transfer is incident to a divorce. The parties cannot elect out of it. The section is applicable even if the spouse or former spouse pays consideration for the property by giving up rights, transferring other property, or paying cash.

Your spouse will continue with the same cost basis for assets as if it was not purchased by your spouse because it was part of the divorce.

You will not report any sale or income from the transaction.

[Edited: 01/26/2022 | 12:55p PST]

[hummingangel]

ok thank you