capital gains tax

Forum|Forum|1 year ago
January 21, 2025
2 replies
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I got divorced and sold a second home in 2024.

Does my ex-wife and I both have to file the capital gains on our taxes or can just one of us?

Best answer by Opus 17

In general, assuming you are 50/50 owners, each of you would report half (half the cost basis, half the selling price, and half the gain).

If your divorce agreement says something different (like, "spouse A assumes full ownership of the second home and is responsible for all expenses and taxes") then follow your divorce decree.

A second home usually does not qualify for the capital gains exclusion, although that depends on the exact circumstances.

MayaD

Each of you should report his/her share. Each will claim half the purchase price, half the selling price. Both of you might Qualify for the exclusion.

For additional information please check:

How does selling a home affect my taxes?

Sale of your home

Where do I enter Form 1099-S?

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Opus 17Answer

Employee

In general, assuming you are 50/50 owners, each of you would report half (half the cost basis, half the selling price, and half the gain).

If your divorce agreement says something different (like, "spouse A assumes full ownership of the second home and is responsible for all expenses and taxes") then follow your divorce decree.

A second home usually does not qualify for the capital gains exclusion, although that depends on the exact circumstances.