MargaretMort Posted March 2, 2011 Report Share Posted March 2, 2011 Not a client but an acquaintance who knows I do taxes. She and her husband are divorcing, is final in 2011. I already told her she would have to file MFS or MFJ for 2010, won't consider MFJ. Neither one could afford to keep the residence they have jointly owned for a number of years so the bank, I suppose, took it back and issued a 1099-S but only in the husband's name and SS. She wants to know if she has to report it on her tax return also. I have no experience in these matters and I can't seem to find any relevant info so I am turning once again to all you experienced preparers for help. My sincere thanks in advance. MM Quote Link to comment Share on other sites More sharing options...
Pacun Posted March 2, 2011 Report Share Posted March 2, 2011 Not a client but an acquaintance who knows I do taxes. She and her husband are divorcing, is final in 2011. I already told her she would have to file MFS or MFJ for 2010, won't consider MFJ. Neither one could afford to keep the residence they have jointly owned for a number of years so the bank, I suppose, took it back and issued a 1099-S but only in the husband's name and SS. She wants to know if she has to report it on her tax return also. I have no experience in these matters and I can't seem to find any relevant info so I am turning once again to all you experienced preparers for help. My sincere thanks in advance. MM If they owned and lived in the house for the last 2 years, you report it as a principal residence and the gain will not be taxable. If there is a loss, just report the proceeds as personal and the loss will be disallowed. You should report it for record keeping. Quote Link to comment Share on other sites More sharing options...
Lion EA Posted March 2, 2011 Report Share Posted March 2, 2011 Definitely report half of it. If soon-to-be-ex hubby reports half in her SSN to IRS, she'll want to have reported her half to match. Quote Link to comment Share on other sites More sharing options...
MargaretMort Posted March 2, 2011 Author Report Share Posted March 2, 2011 Hadn't thought about the fact that it will show a profit. As I said, I haven't dealt with this situation before. Thank you. MM 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.