Shared ownership of house with ex-mother in law. Got divorced. On the deed it says I own 25% of the house but court order only gave me 9%. how do I write off the loss

Forum|Forum|1 year ago
January 22, 2025
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Deed shows 50% Trust(mother in law), ex (25%), me (25%). Per the court order I was only given 9%, my children 3% of the profit of the sale of the house. Mother in law never lived in the house. Only our 2 names were on the mortgage. My ex not mentioned in the court order. How does all this work for taxes

KrisD15

From your description, it looks like you would claim any profit if applicable.

What was 25% worth when you obtained the house?

What was the 9% you received?

If the 9% you received was less than the ORIGINAL value of the 25%, their would be nothing to report.

If you made a profit, reporting would depend on whether this was your personal residence or an investment.

You don't write-off a loss on your tax return if you never claimed it as income in the first place.

There are exceptions for casualty loss, but losses because of divorce don't count as that.

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makschicdesignsAuthor

Thanks for your answer. The 25% was of the sale of the house. Escrow sent me Tax form that had the value of 25% of the sale but that’s not the amount I received. The price on the tax form is over $200k but I received less than $38k. The tax form is what concerns me because 25% was changed to 9% me & 3%kids by the court