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Nem2
New Member

Transfer of property to your ex partner

Do I have to mention anywhere on my taxes that my ex partner bought me out of the house we shared together and I no longer legally own the house (my name has been taken off and he is the only owner). The money I received is only the money I already put into the house so there were no gains. 

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3 Replies
DMarkM1
Employee Tax Expert

Transfer of property to your ex partner

Yes, you will need to report a home sale. In "Wages & Income" scroll down to "Less Common Income" and find the "Sale of Home" topic.  You will enter your portion of the original cost plus your portion of any improvements made while you were an owner, as your cost basis.  You will enter the amount the co-owner paid as the sales price and you can input any sales expenses as well.  If there was any gain then you may qualify for an exclusion of up to $250,000 if you owned and lived in the home for 24mos of the last 5 years leading up to the buyout date.  You will be prompted on that exclusion as part of the interview.  There may not have been a form 1099S issued but you will be asked that question as well.    

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Nem2
New Member

Transfer of property to your ex partner

Thank you for getting back to me. 

so I may not have to fill out that form or mention it in schedule 3?

DMarkM1
Employee Tax Expert

Transfer of property to your ex partner

You should complete the "Home Sale" interview topic and any required forms and schedules will be completed in TurboTax. The home sale should show up on Schedule D with any applicable gain, which would go to form 1040, line 7.  If there is no gain or the gain was excluded in the interview you will be given the option to report or not report the sale on your tax return. Reporting the sale even with zero gain is typical to cover all the bases.      

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