My wife and I are getting a divorce. as part of the divorce, I got 75% of the net of the home sale, and she got 25%. For the proceeds on the 1099s (the total sale), the originally gave us two 1099-s that reported 50% each of total sale. Is this correct? Or should the 1099-s report 75% of the total sale for me and 25% for her? We owned the home for less than a year.
wow. you guys are great how quick you answer.
Does this help clarify:
1. we sold the home, I was given 75% of the net proceeds, and my wife 25% of the net proceeds, per the terms of our divorce.
2. we were both issued separate 1099-s forms that reported 50% of gross for her and I.
3. Question: What should the 1099-s actually have reported? Should it have reported 75% of gross for me and 25% of gross for my wife?
4. The settlement company offered to change the 1099-s to whatever we want.
Thx!
You should take the settlement company up on their offer to issue you corrected Forms 1099-S. That will make reporting the home sale on your tax returns a lot simpler. The Forms 1099-S should reflect what you actually received.
Since you owned the home less than a year, any gain on the sale is taxable. Be sure to adjust (reduce) your sales proceeds for any costs you incurred to sell the home.
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