Question

If my ex wife got 75 percent of the sale of our home and I got 25 percent, how do I claim that on my taxes?

Forum|Forum|2 years ago
February 17, 2024
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If my ex-wife got 75 percent of the sale of our home and I got 25 percent, how do I claim that on my taxes?

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Did you get a 1099-S? What you do will depend on if you did or not and who's name or names were on it.

If you did receive the 1099-S in just your name, then you would need to do a Nominee Return for the 75% that she received. You will basically need to issue your ex-wife a 1099-S for the income that was reported to you that she received that you did not receive. To issue a 1099-S to your ex-wife you can do it directly through the IRS with this website. but this is not part of your tax return. You will then enter the 25% on your return.

If you received one with both of your names on it, then you would just enter the 25% and she would enter the 75%.

If you did not receive a 1099-S, then you would just enter the amount you received from the sale.

To enter the Sale of a Home select the following:

Federal
Income
Sale of Home under Less Common Income

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R

Rock85225Author

So the 1099-S does just have my name on it. The gross proceeds show half the price of the sale price of the property ($199,750.00), which was $399, 500.00 but after all the fees and payoff for our old home were deducted it came out to a total of $143,003.56 profit to us. Out of that, I received 25% and my ex received 75%.

So I should deduct the fees, the payoff of my old house, and the extra percentage that my ex-wife received from $199,750.00?

V

Vanessa A

So it sounds like she received a 1099-S as well since yours is reporting half of the gross proceeds. So you would need to issue the 1099-S for 25% or half of what you received.

When you are entering your portion for the sale, you would only deduct 25% of the fees and the house payoff. She would deduct the other 75% of the fees and payoff since she is getting 75% of the income. This allows the deductions to match the income.

In the end, if you lived in the house for at least 2 out of the last 5 years, it is not going to be taxable income as it will fall under the home sale exclusion.

If you owned and lived in the home for 2 out of the last 5 years, then you may qualify for the home sale exclusion which would exclude up to $250k ($500k if married filing jointly) of the sale of your home. In order to qualify you must not have used the home sale exclusion in the past 2 years.
If you do not qualify, the rest of your income will play a part in the tax rate. This would be a capital gains sale so your tax rate would be between 0% and 20%. The capital gains rates are as follows based on income
- Zero percent rate for the following income
  - $44,625 for single or MFS
  - $59,750 for HOH
  - $89,250 for Married Filing Jointly
- Fifteen percent for income more than above but less than below
  - $276,900 for MFS
  - $492,300 for Single
  - $523,050 for Head of Household
  - $553,850 for Married Filing Jointly
- Twenty percent for the amount that your taxable income is over the 15% level.