ajuroff Posted March 7, 2009 Report Share Posted March 7, 2009 He moves out of house in July. Divorce is final in Sept. Wife had to pay him $31,000 (1/2 value of home to buy him out) This is not considered alimony. Would I report this as a sale of the home with him getting half the cost? He would be able to exclude any gain. Quote Link to comment Share on other sites More sharing options...
Yardley CPA Posted March 7, 2009 Report Share Posted March 7, 2009 He moves out of house in July. Divorce is final in Sept. Wife had to pay him $31,000 (1/2 value of home to buy him out) This is not considered alimony. Would I report this as a sale of the home with him getting half the cost? He would be able to exclude any gain. Was there any type of 1099 issued to him? Quote Link to comment Share on other sites More sharing options...
ajuroff Posted March 7, 2009 Author Report Share Posted March 7, 2009 none. Quote Link to comment Share on other sites More sharing options...
jasdlm Posted March 7, 2009 Report Share Posted March 7, 2009 It's property settlement, not 'house sale'. No reporting required. Quote Link to comment Share on other sites More sharing options...
BulldogTom Posted March 7, 2009 Report Share Posted March 7, 2009 agree with jasdlm. It is a property settlement and not reported. Tom Lodi, CA Quote Link to comment Share on other sites More sharing options...
ILLMAS Posted March 7, 2009 Report Share Posted March 7, 2009 What a lucky guy :D Quote Link to comment Share on other sites More sharing options...
Daune/CA Posted March 8, 2009 Report Share Posted March 8, 2009 Could there not be a potential capital gain depending upon equity in house when purchased or married and equity at time of divorce? Yes it is a property settlement, but there may have been a gain in equity over the marriage time that was more than amt of payments to principal. Of course it would be equity divided by 2, which I gather the full equity at time of divorce is $62,000. Sale only for husband, purchase of equity by wife. Quote Link to comment Share on other sites More sharing options...
Lion EA Posted March 8, 2009 Report Share Posted March 8, 2009 Sale incident to a divorce has no current tax consequence. Basis stays the same in the hands of the now sole owner as it was the last day both of them owned the home. Only when now sole owner sells, will he/she have potential capital gain. New non-owner has cash instead of his/her share of home, just a property settlement. This is the simplified version; your mileage may vary. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.