terry Posted March 4, 2009 Report Share Posted March 4, 2009 T/P's divorced and she continued to live in jointly -owned home until sale in 2008. I'm preparing his taxes (he did not live in home 2 out of 5 yr). He is still able to satisfy use test because she lived there as her main home till sale? Its been awhile since I've had this situation. Thanks in advance! Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted March 4, 2009 Report Share Posted March 4, 2009 Yes, each of them gets to treat their half as §121 sale. Quote Link to comment Share on other sites More sharing options...
terry Posted March 4, 2009 Author Report Share Posted March 4, 2009 Yes, each of them gets to treat their half as §121 sale. Thank-you. He recieved a 1099-S. Quote Link to comment Share on other sites More sharing options...
TAXBILLY Posted March 4, 2009 Report Share Posted March 4, 2009 Did the divorce decree say so? Use of home after divorce. You are considered to have used property as your main home during any period when: You owned it AND Your spouse or former spouse is allowed to live in it under a divorce or separation instrument and uses it as his or her main home. taxbilly Quote Link to comment Share on other sites More sharing options...
terry Posted March 4, 2009 Author Report Share Posted March 4, 2009 Did the divorce decree say so? Use of home after divorce. You are considered to have used property as your main home during any period when: You owned it AND Your spouse or former spouse is allowed to live in it under a divorce or separation instrument and uses it as his or her main home. taxbilly Yes to both. Thanks! Quote Link to comment Share on other sites More sharing options...
grandmabee Posted March 5, 2009 Report Share Posted March 5, 2009 Yes to both. Thanks! Now to add to that ...I have one that its been 5 years she still lives there per devorce decree and now that the house is paid off she pays him rent for his half of ownership. I'm not sure what to do with that. Do I just claim the rent as misc rent on line 21 it's not a rental for profit. He was the one paying the mortgage as part of her alimony and then after five years they were supposed to sell and spilt the money but because of market and having a child at home.... she didn't want to sell. They went back to attorneys and it came back that she had to pay rent for his half. Now I also don't know it that will stop the 121 exclusion when they do sell. I don't know if 121 has a time limit Anyone have this ? thanks Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted March 5, 2009 Report Share Posted March 5, 2009 There is no time limit on the §121 divorce rules. But I would wonder about the situation where he's getting rent from her now. Seems like he has converted his half of the house into rental property, doesn't it? Hmmmmm I'd have to think about that one for a while. Quote Link to comment Share on other sites More sharing options...
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